what is trailing stop loss

hello people,
i have kind of a noob question here.
what is trailing SL?

if i choose a 15 pips TSL, how does it work?

i've searched the internet for the meaning of the term, but to no avail.

If the price moves in your favor by 15 pips a sl is placed on the breakeven. As it moves up from there you lock in pips as it goes.

For example the prices rises 16 pips above your be the ts would move up 1, locking in 1 pip.

If it rises to 15 and falls back you would get taken out at 0.

so, you're saying that. if the price moved 16 pips, the sl will go up by one pip?

if i set the SL at 1.3440 (example) when i bought at 1.3460 and the price moved 16 pips to 1.3476, the SL will be moved to 1.3441?

am i right?

Yes. 17 pips 2 locked... etc. as it falls back the sl stays where it was last set.

so, incase it drops, you still get 2 pips..

ok2.. now i understand..

thanks dude!

No problem. Good luck.

Trailing stops simply follow a stock as it rises in price and then freezes when the stock price starts to drop.

You can set up a trailing stop by points or percentage.

Example: You buy a stock at $10.00 and then you enter a 1 point trailing stop which would make your trailing stop $9.00.

Now lets say the stock moves up to $10.15 your trailing stop moves up to $9.15. This will continue as long as the prices rises. If the price starts to fall your trailing stop freezes until the price rises back above the 1 point you entered, or the stock falls to where your trailing stop is frozen and then your stock is automatically sold.