A trailing stop is a dynamic stop loss that automatically adjusts as the market moves in your favor. It helps protect profits while limiting potential losses.

• How it works:
  • When the market moves in your favor, the trailing stop follows at a set distance (in points or pips).
  • When the market moves against you, the trailing stop does not move, ensuring your profits are protected or losses minimized.
• Example:
  • Gold price: 2332.00 / 2332.30
  • You open a buy order at the market price and set a trailing stop of 50 points.
  • Initially, the stop loss is set 50 points away from the current market price (bid).
  • When the bid price rises to 2332.50, the trailing stop is triggered, and your stop loss is set at 2332.00.
  • If the bid price continues to rise to 2335.00, your stop loss automatically adjusts to 2334.50 (2335.00 − 0.50).
  • If the market then falls, the stop loss remains at 2334.50. Your order will close at this price if the market hits it.

Note: The points for the trailing stop refer to the last decimal of the price.