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Trailing Stop Sell Order

Trading Term

A Trailing Stop sell order sets the stop price at a fixed amount below the market price. If the market price rises, the stop loss price rises by the increased amount, but if the stock price falls, the stop loss price remains the same. The reverse is true for a buy trailing stop order. This strategy may allow an investor to limit the maximum possible loss without limiting possible gain. For more information, see the Trailing Stop Orders page.

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