What is a trailing stop-loss?
This is a compound stop-loss order where a stop-loss price is set at a fixed rate below the market price. If the market price goes up, the stop loss price will also go up proportionally. If the market price goes down, the stop-loss price stays the same. In this way, the trader can set a limit on the maximum possible loss but not limit earnings. This means, that the trailing stop-loss follows the current price by X pips. Therefore a trailing stop-loss is a stop-loss control procedure — “it follows the price to profit.” Attention! Trailing stop-losses only work when your trading terminal is connected to the server through the Internet.
