What is a trailing step?
A trailing step is a measure of price movement and a key component of a trailing stop order – a type of stop-loss order that follows your position if it earns you profit and closes if the market moves against you.
The trailing step is one of the parameters you set to manage the how your trailing stop-loss follows the market price. It dictates how much the underlying market needs to move before your trailing stop re-adjusts. The larger your trailing step, the more the market has to move before your stop is re-positioned, and the less frequently the ‘trailing’ would be performed.