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Costs & risk

Trailing stop

A trailing stop is a stop loss that follows the price at a set distance as the trade moves in your favour, and stays put when the price moves against you. In MT5 it runs only while the platform is open and connected.

Also called: trailing stop loss, trailing SL

Hypothetical example

Hypothetically, you buy at 1.1000 with a 30-pip trailing stop. The price rises to 1.1050, so the stop moves up to 1.1020. If the price then falls back to 1.1020, the position closes with a 20-pip gain.

Related terms

Used in these guides

  • Costs & risk8 min read

    Stop loss and take profit

    How stop loss and take profit orders close a position automatically, how to read the distance in pips and money, and their limits.

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