New AccountTrailing Stops
In addition to regular stop orders, our FX Trading Platform offers trailing stops.
Given the entirely electronic nature of Forex, traders are able to better automate their trading preferences. Unlike a traditional stop which sets a fixed price for a position to be closed, a trailing stop moves with the market, locking in more profit as the market moves in your favor.
Many traders can become extremely frustrated by traditional stop orders. Using traditional stops, you may be entirely correct about a currency pair's movement, but still make no money. For example, you predict that the GBP/USD is rise to increase over night. You place a market order at the current price of 1.7500. You decide that you\pre not willing to lose more than 15 pips, so you place a traditional stop at 1.7485. You wake up the next morning to discover that you were corret, but actually lost money! The market moved 50 pips up, but retaced all the way back to 1.7500 and then the additional 15 pips to 1.7485, automatically closing your position at your predetiermined stop point.
Had you placed a trailing stop, your outcome would have been very different. Using the same example, let's presume you placed a trailing stop order. Again, the market was at 1.7500. Again, you weren't willing to lose more than 15 pips so you placed a trailing stop 15 pips behind the current market price. If you opened the position and it immediately moved against you, the position would have closed at 1.7485 (just like your stop order). However, if the market moves up a single pip, the trailing stop will follow. Had you used a trailing stop, you would have secured 35 pips of profit that same night. After increasing 50 pips and reversing, it would have closed 15 pips below its highest point.
Placing a Trailing Stop on our Trading Platform
Placing a trailing stop on our FX Trading Platform can be done very easily. Each position you open is represented by its own row in the open positions window. Each position has a field for both "stop" and "trailing stop".
By clicking the empy space below "stop," a window will open providing access to both stops and trailing stops.
As you can see in the image above, you can easily input a trailing stop value. Once you have done so, the value you enter will appear in the "Tr. Stop" section of your "Open Positions" box.
If you have any questions with regard to our trailing stops, Contact US or speak to a representative via the online chat to the left.
