Question: What is Trailing Stop? How to setup the order on MT4 and MT5 trading platforms?
“Trailing Stop” is used to maximize the potential profit and limit the loss to the certain level together automatically.
“Trailing Stop” is a “Stop Loss” order that changes by itself by following the relevant market price movement according to the parameter the trader has set.
The order needs to come with existing open positions or pending orders, and you will set the parameter by points as below.
Once you set the “Trailing Stop” parameter, the “Trailing Stop” isn’t triggered yet.
It will be triggered only when the market price moves to the favor of your position, equals to or more than the previously indicated level.
If the market price moves against the favor of your position before the “Trailing Stop” is triggered, then the relevant open position is active without a stop loss level.
So you are recommended to setup a Stop Loss level before leaving your eyes from the platform after setting a “Trailing Stop”.
The page below shows the list of MT4 and MT5 brokers.
