Trailing stops move in favour of your position, locking in profit.
In this tutorial, we’re going to place a trailing stop on our open trade.
Here, we’ll be using our existing open Eurodollar position.
First, we need to click on the amend button to bring up the deal ticket showing our original opening level. Now, we need to tick the stop checkbox and then click on trailing in order to activate the trailing stop loss feature.
A trailing stop loss can be used if you are looking to allow the successful open trade to capture some of its profit.
Your trailing stop loss will sit a specified number of points away from the current market price and will trail higher on a long position as the trade continues in your direction, your trailing stop-loss on a long position will never move down and vice versa for short positions and will be executed if the trade turns around by the number of points nominated by your trailing stop.
One thing to note is that the trailing stop-loss will not work if you have a profit taking order in place.
You will notice when I’ve got the limit order selected that I cannot select trailing stop loss, so make sure you do not have limit selected and then simply click on trailing.
Now, what we are going to do is trail the stop loss 25 points away from the current market price. Once again, you can use the up or down arrows ours to adjust your stop-loss accordingly or you can simply type it in like so.
Once we’ve set our nominated trailing stop loss level, we simply click on submit, a confirmation will pop up given us our price level of our trailing stop, and you’ll notice in the open positions window the letter T in brackets after the stop indicating that we’ve got a trailing stop loss in place, so that’s how we a trailing stop loss on an existing open position.
We look forward to seeing you in the next tutorial.