A Trailing Stop is an automated stop-loss mechanism that moves with the market when your trade is going well. It helps you lock in the profits as the market moves your way and reduces losses if the market turns against you. Unlike a normal stop loss, which stays in one place, a trailing stop follows the price. It is only available on MT4 and MT5 desktop terminals.
For example, if you set a trailing stop of 20 points, and the price rises, the stop-loss will follow it. If the price then falls by 20 points from the highest level reached, the trade will close automatically.
How to set up a Trailing Stop
1. On MT4 or MT5, right-click on the open order in the Trade tab.
2. Select Trailing Stop.
3. Select the number of points you want the SL to trail your price. You can also customise the value by selecting Custom.
How to Adjust or Remove a Trailing Stop
1. Right-click on the open order on the Trade tab.
2. Select Trailing Stop.
3. Select the number of points you want to change from the options or select Custom to set up your preferred value.
4. If you want to remove the Trailing stop, click None or select Delete All, which deletes the trailing stops from all open and pending orders.