A trailing stop is an automated mechanism to have the Stop Loss (SL) trail behind the current price of an order by a set number of points. This is one of the best tools for risk management. It is often used when an order’s price is volatile or when active monitoring of the order is not possible, since it can automatically close an order.
Please note: This is currently only available on MT4 and MT5 desktop terminals. Trailing stops are not available on mobile trading terminals; they are only possible on desktop-based trading terminals.
How do I set up a trailing stop?
To activate a trailing stop, the order needs to be profitable by a set number of points. Only after this condition is met will this feature be available. On the MT4 or MT5 platforms:
Right-click on the open order in the Trade tab.
Select Trailing Stop.
Select the number of points you would like to have the SL trail your price.
You may choose from the options or click Custom to enter your preferred value.
How do I manage a trailing stop?
To modify a trailing stop:
Right-click on the open order in the Trade tab.
Select Trailing Stop.
Select the number of points you would like to change from the given options.
You can also select Custom to set up your preferred value.
To remove a trailing stop:
Right-click on the open order in the Trade tab.
Select Trailing Stop.
Select None.
Please Note:
Only one trailing stop can be set for each position.
The trailing stop cannot be set to less than the stop level. The minimum amount that can be set will depend on the stop level pips for each particular instrument, as shown in the contract specifications. Due to limitations on the trading terminal, a trailing stop can never be set at less than 15 points in MT4.
Trailing stops can be set for pending orders. If you have already set up a pending order, you can add a trailing stop to it.
The trailing stop will start working only after the order has started moving in a profitable direction by the exact number of points the trailing stop is set at.
Each time a trailing stop modifies the SL, it will be recorded in the journal tab. A trailing stop can be set up regardless of whether an SL was initially set. Once the trading terminal is closed or your device is shut down, the trailing stop will stop working. To avoid this, you can use our Taurex VPS.