What is trailing stop loss?
Trailing stop loss, also known as “trailing stop loss”, is a stop loss that follows the latest price and sets a certain number of points. It is only triggered when the exchange rate changes in the favorable direction of the position. It is an instruction set when entering the profit-making stage, and the purpose is to achieve most Book income is a very good trading tool, especially in the case of large price fluctuations, which can guarantee your profit.
Trailing stop loss will automatically change when the market changes a certain amount in a direction that is beneficial to you to lock in profits. When specifying this type of stop loss, you need to enter a stop loss value and a step value. The latter is the number of points that the market must change in your favor before triggering the corresponding stop loss.
When positions become more and more profitable, by increasing the stop loss trigger price, traders can ensure that most of the book gains can still be realized when the market moves in the opposite direction.
For example, if you set a stop loss of 6 points from the current position with a step length of 10 points, then every time the market changes 10 points in a direction that is beneficial to you, your stop loss will automatically change accordingly, keeping the distance 6 pips level for the new position.
Add trailing stop loss on the transaction order
- Click the down arrow in the ‘Stop Loss’ column
- Select ‘Mobile’
Trailing stop loss does not apply to order orders
Please note: Trailing stop loss does not apply to order instructions
- Enter the stop loss and move step in the box
Trailing stop example
Suppose you add a trailing stop loss to a long position in the German 30 Index, and the German 30 Index is currently trading at 10450.
Your stop loss level is 10435, and your stop loss distance and moving step are set to 15 and 5 respectively. If the market moves in your favor and reaches 10455 (10435 + 15 + 5 = 10455), your trailing stop loss order will take effect, and the new stop loss level will be at 10440, maintaining a stop loss distance of 15 points . Every time the market moves 5 points in your favor, the trailing stop loss will change to a stop loss level that can maintain a stop loss distance of 15 points.
When the German 30 Index hits a high of 10493 and then withdraws by 70 points, the stop loss after the move will be adjusted to 10475, and your position will be profitable at this position.
If the market changes in a direction that is not conducive to you, then the position will stop loss at 10435.
Please remember: Trailing stop loss is not a guarantee and slippage may occur. This means that the execution price of the trailing stop loss may not be executed exactly at the level you specify.