Trailing Stop Loss
Quick Definition
A dynamic stop-loss order that automatically tracks market price at a set distance as the trade moves into profit, locking in gains while leaving upside open.
Detailed Explanation
A Trailing Stop only moves in the direction of profitable price movement and never widens. For example, if a 20-pip trailing stop is set and the market advances 50 pips, the stop moves up by 30 pips, guaranteeing a 30-pip minimum profit if the market reverses.
Key Trading Rules & Takeaways
- Automates profit preservation without manual chart monitoring.
- Prevents winning trades from turning into losing trades.
- Built-in feature across all institutional FxSnipers EAs.
Calculate & Automate Trailing Stop Loss
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Frequently Asked Questions
Does a trailing stop work if MetaTrader is closed?
Client-side trailing stops require MT4/MT5 to be running (or on a VPS). Server-side trailing stops are maintained by the broker.