What is the full form of TSL in the Share Market?

The TSL full form in the Share Market is Trailing Stop Order Loss. This is a type of order where the stop loss is revised along with the target at the same rate as that of the market price of the stock. This is an exceptional tool to handle market volatility and mitigate market losses.

Features of trailing stop order loss:

The trailing stop order loss is set as a predefined loss percentage that can happen while trading a financial instrument. The TSLs are established to function on their own, in correspondence with the investing software of the stockbrokers. The TSL moves in accordance with the fluctuations in the price levels of the financial instrument. This type of stop order is highly efficient in managing both the risks and the trade and maintains the highest level of discipline while trading the financial markets.

Advantages of TSL:

Traders can make use of the TSL in a number of situations while trading. It does not put a ceiling on profits and the traders will be able to hold their positions as long as the market price of the financial instrument doesn’t come below a specific percentage. This prevents traders from making reckless decisions on the basis of their emotions and doesn’t incur additional charges on the stockbrokers.