Trailing Stop-Loss Orders

A trailing stop differs from a stop-loss order in that it's based on a percentage, rather than a fixed amount, and adjusts as the stock price rises. However, if the stock price starts to drop after climbing, it can stay locked at its most recent position. Click between the buttons below to see the difference in orders.

Stop-Loss Order  Trailing Stop-Loss  

Chart: Investopedia/Peter Gratton
Investopedia