IMG
  • Header banner 1
ad

What is a Trailing Stop in Forex ?

Exit strategies are a vital component of forex trading, which helps restrict and minimize trade loss risk. In fact, the absence of appropriate exit strategies

Exit strategies are a vital component of forex trading, which helps restrict and minimize trade loss risk. In fact, the absence of appropriate exit strategies could be catastrophic for an investor. A trailing stop is one such forex exit strategy, which entails moving the stop loss level when a trade progress favorably.

Understanding How a Trailing Stop Works

Trailing stops are often used in conjunction with stop-loss orders. To set up a trailing stop successfully, it is important first to determine a stop loss. A stop-loss order involves setting a dollar amount that is lower than the current trading price of the currency. When the currencys value reaches this specified price, a stop-loss order is activated, and the currency is sold.

A trailing stop also entails setting a stop loss value. However, in this case, the sell stop price is not a dollar amount but is expressed as a percentage lower than the current market price. For instance, the current market price of a currency is $40, on which a 10% trailing stop is determined. In this case, the trailing stop will get activated when the currency's market price reaches $36 ($40 - 10% of $40).

It must be noted that a trailing stop moves in the direction of a price rise. In the above example, if the currency's price increases to $44, a trailing sell stop level will be set at $39.6 ($44 - 10% of $44). It must also be noted that a trailing stop only goes up and does not follow a price if it falls.

Feasibility of a Trailing Stop

Determining the feasibility of a trailing stop and other forex exit strategies is an intricate task, which will depend on your desired level of risk-return payoff. Broadly speaking, a trailing stop is a better exit strategy than a stop loss, offering scope for higher profitability.

However, you will only be able to optimize your forex trading systems when the percentage of a trailing is wide enough to counter the effects of random noise and normal fluctuations in the market.

Comments (56)

  • Tayotm
    custom research paper writing - pay for a research paper writing a paper
  • Oxkgdb
    hard rock casino online - online casino games for real money best online casino usa
  • Hmhdpk
    ivermectin order online - stromectol for humans for sale ivermectin 12mg without a doctor prescription
  • Ddzmsc
    ivermectin 12 mg oral - ivermectin medication stromectol tab
  • Puqxxw
    cialis online free shipping - Cialis online store buy cialis over the counter uk
  • Adblra
    cialis over the counter mexico - cialis generic offshore pharmacy no prescription
  • Puappc
    buy sildenafil online australia - female viagra pill viagra 100 mg tablet price in india
  • Eqzyvl
    sildenafil 25 mg uk - real viagra viagra canadian pharmacy paypal
  • Dvsqof
    stromectol uk buy - buy oral ivermectin stromectol uk buy
  • Xgkewj
    buy stromectol usa - cvdivermc.com ivermectin 2mg
  • Llkszn
    cialis daily australia - tadalafil canadian pharmacy cialis online purchase
  • Geqfqh
    prednisone 5 mg pill - can i buy prednisone online without prescription prednisone 10 mg daily
  • Ynewmi
    generic tadalafil 20mg - where to buy cialis over the counter buy generic cialis online europe
  • Lmhyrv
    best price for genuine viagra - viagra next day delivery viagra pill price
  • Mxxlgb
    ivermectin cost in usa - stromectol tablet price ivermectin 4 mg
  • Nteftf
    xenical 120mg uk - orlistat 60mg capsules xenical 120mg coupons
  • Elhjsa
    vilitra 20mg - cenforce 25 cenforce 120 paypal
  • Mvxmih
    plaquenil vs hydroxychloroquine - prednisone 10 mg tablets prednisone daily
  • Xyqoxf
    vardenafil coupon - canada drugs coupon walgreens ed pills
  • Etoifi
    200 mg viagra for sale - genericviagra cialis 20 mg online pharmacy
  • Ofhrqt
    oral ivermectin cost - ivercvd.com purchase ivermectin
  • Jcfxwa
    isotretinoin 40 mg - buy accutane 20mg online accutane 20mg
  • Uwuvpr
    tadalafil buy - tadalafil 20 purchasing tadalafil online
  • Piqrrn
    cheapest sildenafil - sildepl.com sildenafil online prescription
  • Xigcvw
    where can i buy ivermectin - stromectol prices ivermectin 250ml
  • Dtocnp
    online doxycycline - doxycycline 25mg prednisone prednisolone
  • Auqfsp
    cytotec prescription online - cytotec for sale online cytotec tablet 200mg
  • Fetmnm
    buy ventolin - albuterol nebulizer ventolin online
  • Xwasqw
    furosemide online purchase - lasix 40mg to buy where to buy furosemide 80 mg
  • Mbjroy
    prednisone 2 mg - prednisone 10 mg prednisone over the counter canada
  • Ncsbjf
    ivermectin tablets for humans - ivermectin for humans for sale ivermectin cream canada cost
  • Veinlm
    buy viagra online 25mg - Alternative for viagra cheap real viagra online
  • Myiixs
    thesis writing services - buy essay cheap my childhood essay writing
  • Zeseen
    methylprednisolone pill - medrol 80 mg lyrica prescription
  • Xqufgt
    amoxicillin sleep - amoxil 500mg amoxicillin without prescription
  • Xoptjs
    buy generic accutane online - where to purchase accutane canadian pharmacy accutane with no prescription
  • Aboruh
    prednisone daily use - prednisone 2 mg daily prednisone 50 mg
  • Zlvfwt
    stromectol price - ivermectin 12 buy ivermectin online
  • Dsufhf
    acheter vardenafil - online apotheke vardenafil rezeptfrei lola vardenafil generic
  • Wogmrb
    uk pharmacy - tadalafil cheapest price cost of generic cialis in canada
  • Jtgwbq
    generic viagra cost in canada - buying viagra in mexico
  • Fnpish
    neurontin price india - generic neurontin 600 mg synthroid 50 mg price
  • Vexrde
    doxycycline 163 - order doxycycline online uk price of doxycycline
  • Ibvkjn
    cytotec pill for sale - buy cytotec online uk cytotec 100 mg cost
  • Ubrepa
    ventolin cost uk - ventolin uk price ventolin 90
  • Wqifpd
    which erectile dysfunction drug is best - online drugs ed pills that work
  • Rbnhon
    buy stromectol for humans - proivermectin ivermectin 2%
  • Pjalnl
    pharmacy online 365 - Cialis online us which pharmacy is cheaper
  • Umzbfp
    brand viagra 50mg online - how to get a viagra prescription online female viagra pills in india
  • Bqctqa
    prednisone for cheap - prednisone 5mg for sale prednisone brand name
  • Xdmjcv
    for him ed pills - ed pills gnc best otc ed pills
  • Nyihke
    slot machines - online casino games for real money online casino games for real money
  • Wypqei
    ivermectin 4000 - stromectol coronavirus stromectol drug
  • Tgzyvj
    buy tadalafil 20mg - cialis to buy cialis pill generic
  • Yayabx
    viagra triangle - sildenafil 200mg buy sildenafil generic canada
  • Vcbtkc
    tadalafil 20mg price - free cialis samples cheap cialis 40 mg

Write a Comment

Forex Featured Brokers

FXTM

$10000 Trading Credit
30% Deposit Bonus
Broker Type : STP/ECN
Leverage up to 1:1000

Start Trading View Profile »
LegacyFX

Free Trading Signals
Leverage - up to 1:200
Min: Deposit: $250
Broker Type: STP/ECN

Start Trading View Profile »
HotForex

100% Free Bonus
Minimum Deposit $5
Leverage up to 1:1000
Broker: STP/ECN/NDD

Start Trading View Profile »
AMarkets

15% Deposit Bonus
Minimum Deposit $100
Leverage up to 1:1000
Broker Type: ECN/STP

Start Trading View Profile »
LIRUNEX

$6000 Trading Bonus
50% Deposit Bonus
Leverage up to 1:1000
Minimum Deposit $25

Start Trading View Profile »
ATFX

50% Deposit Bonus
Leverage up to 1:400
Minimum Deposit $100
Broker Type: NDD

Start Trading View Profile »