In foreign exchange trading, any indicators, data, and trading techniques are a double-edged sword. We not only need to see their excellent places, but also their shortcomings. The same is true for mobile stop loss (tracing, trailing stop loss) in foreign exchange gold MT4 or other trading software. It has both advantages and disadvantages.

What is the difference between stop loss and trailing stop loss?

Is it the same to set stop loss and trailing stop loss on MT4? Some novice traders are confused, is there any difference between these two stop losses?

In fact, there is no conflict between setting stop loss and trailing stop loss on mt4, which means that traders can also set trailing stop loss while setting stop loss. On the mt4 platform, the stop loss set by the trader is that the market price reaches the set price and the execution will be triggered. With the trailing stop loss function, the trailing stop loss function can be used regardless of whether the order has a stop loss set or not.
What is the difference between stop loss and trailing stop loss

When the exchange rate moves in a favorable direction and exceeds the set trailing stop loss value, the trailing stop loss will be activated and a new stop loss price will be generated. (The new stop loss price is: buy order opening price + 0.1 pips or sell order opening price-0.1 pips) After activation, the new stop loss price will dynamically move 0.1 pips in a favorable direction with the exchange rate.

In addition, it should be noted that the trailing stop loss will only take effect automatically when the platform is started, and will not work when the platform is closed.

The starting exchange rate of the trailing stop loss is the exchange rate at the time of the trailing stop loss, not the exchange rate when the position is opened (if the trailing stop loss is placed when the position is opened, then the starting price of the trailing stop loss is the opening price Exchange rate at that time).

For example, when you short the British pound at 1.7539, set a stop loss at 1.7566 and a trailing stop loss of 30 points when placing an order. Then when the exchange rate drops to 1.7509, the platform will automatically move the stop loss once to 1.7536.

But if the stop loss is not modified at the same time or in the middle of the order, if the trailing stop loss is placed at this time, the starting exchange rate of the trailing stop loss is the exchange rate at this time of the trailing stop loss, or the previous example, such as when the market rises When the trailing stop loss is reached 1.7556 or the stop loss price is modified, the starting exchange rate of the trailing stop loss at this time is 1.7556 instead of 1.7539. When the market falls to 1.7526, the platform will automatically move the stop loss once to 1.7536 (stop The loss is set at 1.7566).

The main difference is

On the mt4 platform, stop loss is a stop loss transaction that the market price set by the trader is reached. 2. The function of trailing stop loss is that the trailing stop loss function can be used regardless of whether the stop loss is set or not.

When the upward trend moves in a favorable direction and exceeds the set trailing stop loss value, the trailing stop loss will be activated and a new stop loss price will be generated.

(The new stop loss price is: buy order opening price + 0.1 pips or sell order opening price-0.1 pips) After activation, the new stop loss price will dynamically move 0.1 pips in a favorable direction with the exchange rate.

Note: Trailing stop loss only takes effect automatically when the platform is started, and has no effect when the platform is closed.
MT4 platform-trailing stop loss (trailing stop order)

MT4 platform-trailing stop loss (trailing stop order)

In the actual spot gold trading, Hexin often tells investors about moving stop loss, and many investors actually don’t know how to operate. Now let’s first explain the meaning and operation method of moving stop loss on the MT4 platform

Stop loss means to stop trading when the price slides down and when it falls to the stop loss level. If the position starts to take profit, the stop loss can be manually maintained at the level. If you want to execute this procedure automatically, you need to create a trailing stop loss. This tool can play a certain role when prices change significantly or when continuous market quotes.

Trailing stop loss is different from stop loss server, it needs to be attached to open positions and client terminals. To set a trailing stop loss, you need to operate in the menu for opening a position in the “terminal” window. Then, select the difference between the desired stop loss level and the current price in the opened list. Only one trailing stop loss can be set for each position.

After all activities are completed, the quotation will enter and the terminal will detect the profit of the position. Gradually, the number of profit points will be equal to or higher than the specified level, so that the order to place a stop loss order will be automatically given. The level set for the order must be different from the current price. In the future, if the price changes in the profit direction, the trailing stop loss will automatically stop the loss at the price set in the order, but if the position profit declines, the order cannot be modified. Because the profit of trading positions is automatically regulated. After each stop loss order is modified, the record will be written in the terminal log.

The prohibition of trailing stop loss can be set to “none” in the management menu. If “Delete All” is executed, the trailing stop loss of all open trades and pending orders will be prohibited.

There are many ways to stop loss in operation, depending on how we skillfully apply it. But we must strictly operate discipline, [Stop Loss-Importance and Application Principles] because the importance of stop loss is self-evident.