Imagine a trailing stop order as a loyal guard who constantly adjusts its position as your precious treasure (your trading position) moves through the market. It sets a predetermined distance away from the entry price and then follows your position, always making sure to stay a fixed amount of pips behind (or above) it. Should the price stagnate, the trailing stop remains steadfast, holding its ground. But if the price starts to retreat, the faithful guard closes the gate, securing your profits before any harm can befall your treasure.
