A trailing-stop order is an order entered with a stop parameter that creates a moving or trailing activation price, hence the name. This parameter is entered as a percentage change or actual specific amount of rise (or fall) in the security price.  Sometimes we will enter a trailing stop with an entry point.  This means to enter a trailing stop when the stock reaches that price.  We leave the activation price to the reader.  If you need a rule of thumb, some people use 1%.