JoymistaWhat Is a Trailing Stop?
A trailing stop is a stop-loss that follows price at a fixed distance when it moves in your favour, and never moves back.
Explained
A trailing stop helps in strong trends because it protects part of the gain and lets the trade run. Its downside is that ordinary noise can hit it before the trend continues.
Example
Example with made-up numbersYou buy at 1.1000 with a 30-pip trailing stop. Price rises to 1.1060, so the stop is now at 1.1030, and it stays there if price falls back.
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Related terms
- Stop-LossA stop-loss is an order that closes your trade automatically at a price you set in…
- Take-ProfitA take-profit order closes your trade automatically at a target price you set in advance,…
- ATR (Average True Range)ATR measures the average price range per candle over a number of candles (14 by default),…
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Open in JoymistaEducational content, not investment advice.