An order (specifically, a type of stop order) which has a trailing trigger/ trailing stop: the trigger price (stop price) adjusts with the trading price of a security. Also, the trailing stop can be set to initiate a market order provided that the trading price changes in a preset proportion.

For instance, a 5% trailing stop will trigger a market order to sell a security if its price drops by 5% from its peak level. Likewise, a sell order will be triggered if the price of the security declines by $3 from its high.