---
title: "Trailing stop - Meaning & GFN's Figure - Get Funded Now"
description: "A stop loss that follows the price at a fixed distance as a position moves into profit, and stays put when it moves back."
url: "https://getfundednow.com/glossary/trailing-stop"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/trailing-stop"
  pt-BR: "https://getfundednow.com/pt-br/glossary/trailing-stop"
  fr: "https://getfundednow.com/fr/glossary/trailing-stop"
  it: "https://getfundednow.com/it/glossary/trailing-stop"
  de: "https://getfundednow.com/de/glossary/trailing-stop"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Trading mechanics

# Trailing stop

A stop loss that follows the price at a fixed distance as a position moves into profit, and stays put when it moves back. It locks in gains without capping the trade at a target.

GFN’s figure

A trailing stop is a trade-level tool; GFN's 5% Instant drawdown applies the same logic at account level, following your equity high upward.

In detail

## Trailing stop, explained

A trailing stop is the trade-level version of a trailing drawdown, and it behaves the same way: it protects what has been made and tightens the room available, so a normal retracement can end the trade.

The distance matters more than the idea. A trail closer than the instrument's ordinary noise converts winners into small losses at a reliable rate.

[Rules handbook](https://getfundednow.com/rules) · [More trading mechanics](https://getfundednow.com/glossary/category/mechanics)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Stop loss](https://getfundednow.com/glossary/stop-loss) - A resting order that closes a losing position at a predetermined level. It is the mechanism that turns a risk-per-trade figure into an actual limit rather than an intention.
- [Break-even stop](https://getfundednow.com/glossary/break-even-stop) - Moving a stop loss to the entry price once a trade is far enough into profit, so the position can no longer produce a loss. It removes risk from the trade at the cost of a tighter exit.
- [Trailing drawdown](https://getfundednow.com/glossary/trailing-drawdown) - A maximum drawdown whose floor follows the account upward as it makes new highs. The distance between your peak and the breach level stays constant, so every new high moves the stop-out level with it.
- [Take profit](https://getfundednow.com/glossary/take-profit) - A resting order that closes a position at a target price. Paired with a stop loss it fixes the reward-to-risk ratio of a trade at the moment it is placed, before the outcome is known.
- [Partial close](https://getfundednow.com/glossary/partial-close) - Closing part of a position while leaving the remainder open. It banks some of the result and reduces the risk carried by the trade without giving up exposure entirely.

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Source: https://getfundednow.com/glossary/trailing-stop
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt