Hello everyone!! Guys what do you think of freetrade adding a trailing stop-loss feature in the app? This help protect some of the profits we make on future trades. For those who knows and see the importance of this feature please vote…
Trailing Stop Loss
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A trailing stop loss sets the stop-loss order at a fixed amount of pips above or below the market price, depending on whether the position is SELL or BUY. As long as the market is moving in your favor, the stop loss will move with it, maintaining the same locked-in pip distance from the current market rate.
For example, if you set TSL for a BUY position, the stop loss will rise with the market in one-pip increments. This is why it’s called a ‘trailing’ SL; as the price rises, the stop loss rises with it. However, if the market is moving in the opposite direction i.e., if the price is falling, the stop loss will not change and a close order will be submitted when the stop loss rate is reached % set on.