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Trailing Stop

A trailing stop is a variation on a standard stop order that can be put at a specific percentage or dollar amount distant from a security's current market price. Trailing stops are generally used to lock in profits after an asset's price as reached the investor's desired level. For reference, a trailing stop loss on a long investment (or trade) is placed below the current market price, where a trailing stop is placed above the current market price for a short sell type of trade or "investment".

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