What is Trailing Stop? How does it work? Table of Contents

Trailing Stop is a mechanism that automatically tracks stop loss for the current price of a specific order, set in point numbers.

It is one of the best tools for maximizing profits.

Let’s find out why.

When to use Trailing Stop?

Trailing Stop is typically used when prices fluctuate heavily in the same direction, or when for some reason the market is not constantly being watched.

Note: Currently only available for MT4 and MT5 PC terminals.

Go to EXNESS Official Website

How to use Trailing Stop?

Suppose you set your preferred take-out (TP) and stop-loss (SL) numbers when you open a buy order. The market is moving to your advantage and making a profit, but you can’t keep an eye on the market because you’re busy.

Suddenly the event occurred and the price started to drop just before the realization of profit (TP) was reached, and the order was closed at the set stop loss (SL). Now is the time to use Trailing Stop.

Trailing Stop allows you to track how far the current price is from Stop Loss (SL). If the trend of the market is reversed, it can leave at least a fraction of the profit.

Note: You can set Trailing Stop even if you have not set Stop Loss.

To set a tracing stop on MT4 or MT5, follow these steps:

  1. Right-click on open order in the Trade tab.
  2. Select a tracing stop.
  3. Select the point number to set the tracking stop loss.

You can choose from the options, or click Custom and enter the values ​​you want.

Open EXNESS’s Account for Free

When should it be used/discontinued?

To activate Trailing Stop, the order must be in a trend that is profitable by a certain set point number.

This feature is only activated after this condition is met.

This feature is not stored on the server, so it is automatically turned off when the computer is shut down.

You can use VPS to avoid this.

Find out more about EXNESS’s VPS