A trailing stop order is a type of stop-loss order that moves with the market price, helping traders lock in profits while protecting against significant losses. Unlike a traditional stop-loss, which is set at a fixed price, a trailing stop dynamically adjusts based on price movement. For example: • In a long position: If the price moves in the trader’s favor (up), the trailing stop moves up accordingly, maintaining a set distance (e.g., 50 pips) below the current price. If the price then reverses and falls by the set distance, the trailing stop triggers a market order to close the trade. • In a short position: The trailing stop would move down as the price falls, but if the price rises by the set distance, it triggers the stop order to close the trade. Trailing stops are used to protect gains and allow trades to stay open as long as the trend is favorable, but they automatically exit the position if the market reverses.#firstdealoftheyearFateema