Kelvin Posted May 24, 2020 Share Posted May 24, 2020 Quote Link to comment Share on other sites More sharing options...
0 Brandon Posted May 24, 2020 Share Posted May 24, 2020 Hi Kelvin, A trailing stop-loss order is a particular type of stop-loss order. It is almost similar to the basic stop-loss order; however, the significant difference with it is that it goes after a certain price as this price is moving in a favorable direction, unlike a stop-loss order that remains at a specific price. As a trailing stop-loss moves in a certain direction, it helps to spot where you can make a profit and therefore acts accordingly. It cages a profit while keeping the trade open until the trailing stop level is reached. The trailing stop-loss order is set at a specific distance from the original point so that when the stop-loss level is reached, a stop-loss order is activated, and the market position is closed. A trailing stop-loss follows a favorable direction. If this direction changes and the market starts moving in an unfavorable direction, the trailing stop loss will reverse. In a trailing stop-loss, once you reach the stop-loss price, your trade will close; hence, you avoid making a loss. Quote Link to comment Share on other sites More sharing options...
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