A Trailing Stop is a dynamic stop-loss feature that automatically adjusts as the market moves in your favor. With a trailing stop function you set the Stop Loss in a specified distance in PIPs from the price. The trailing stop will automatically adjust as the price moves in your favor, keeping the set distance from the market price. Trailing stops are best suited for trending markets, when the idea is to stick with the trade as long as it's moving in your favor.
For example, buy EURUSD at 1.2000 and set a Trailing Stop of 15 pips, your stop loss will trail the price by 15 pips once the price moves in your favor:
- At the price 1.2000, the trailing stop will close the order if the price falls to 1.1985 (15 pips below entry).
- If the price rises to 1.2015, the trailing stop adjusts. Instead of exiting at 1.1985, your stop loss will now be 1.2000 (15 pips below the new price).
- If the price rises to 1.2035, the trailing stop moves up to 1.2020 (still 15 pips below the current price).
Set Up Trailing Stop on PC (MT4 & MT5)
- Go to the Terminal window (or press Ctrl+T if you do not see it).
- Click on the "Trade" tab to see your open positions.
- Right-click on it and select "Trailing Stop" from the menu.
- Choose a predefined value (e.g., 15 points, 25 points) or select "Custom" to enter your own distance.
- You can remove it anytime by selecting Trailing Stop → None.
On Mobile (MT4 & MT5 App)
Unfortunately, Meta Trader mobile apps do not support trailing stops directly. You can only set Stop Loss and Take Profit levels manually.