Trailing stop order is a pioneering trading tool for perpetual DEXs that allows you to automatically follow the market at a certain distance from the price, capturing market reversals. This way, you can improve your entry or exit position as long as the price continues moving in your favor.
There are multiple types of orders: standalone, Take Profit, Stop Loss, entry, or even a limit order with an activation price. The Trailing Stop Loss is the most commonly used among them. It activates once your stop loss target is reached and follows the market upward if it moves in your favor. This way, the stop loss not only helps minimize losses but can also function as a trailing Take Profit, preserving the upside potential of your trades.