A trailing stop is a type of stop-loss order attached to a trade that moves as the price fluctuates. It is designed to lock in profits or limit losses as a trade move favorably by a certain amount of pips, as set by the investor.

It is important to note that trailing stops are stored locally on your trading platform and only move if the price moves favorably. Once it moves to lock in a profit or reduce a loss, it does not move back in the other direction. You must ensure your trading platform is running at all times should you set a trailing stop on your positions.