Trailing Stop-Loss

What is a Trailing Stop-Loss?

A trailing stop-loss is an advanced order type that automatically adjusts as the price of an asset moves in your favor. It helps protect profits while still allowing room for price growth.

How It Works

• If the price increases, the stop-loss moves up accordingly.

• If the price drops by a set percentage or amount, the stop-loss triggers a sell order.

• Unlike a fixed stop-loss, it dynamically follows price movements to secure gains.

Locks in profits while keeping trades open for potential gains. Reduces emotional decision-making in volatile markets.

Example

• You buy BTC at $50,000 and set a 5% trailing stop-loss.

• If BTC rises to $55,000, the stop-loss moves to $52,250 (5% below the highest price).

• If BTC falls to $52,250, it triggers a sell, securing profits.

Set Up a Trailing Stop on Coinrule