What is a trailing stop loss?

The Trailing Stop Loss feature offers a dynamic approach to managing risk, allowing traders to automatically adjust their stop-loss levels as the market price moves in a favorable direction. Unlike traditional stop loss orders which are static, the Trailing Stop Loss dynamically follows the market price by a pre-set distance, locking in profits as the price rises while limiting losses in case of market reversals.

Key Benefits:

  • Trade Protection - As the market moves in favor of the trader the stop-loss level adjusts automatically, protecting trades and minimizing losses.
  • Enhanced Efficiency - The automatic adjustment of levels allows traders to focus on rising opportunities without the need for constant oversight of positions.
  • Emotional Control – The Trailing Stop Loss helps mitigate the impact of emotional decision-making, helping traders to better maintain discipline in volatile markets.

At ThinkMarkets, we’re committed to staying at the forefront of innovation, which is why we continue to develop and deliver the tools, features, and resources our clients need to thrive in their trading journeys. We offer a trailing stop loss on our ThinkTrader and MT4/MT5 platforms.