What is Trailing Stoploss?
The trailing stop loss is a Financial Market strategy that allows traders to set a dynamic stoploss according to market direction and protect trades from losses. Once a trade has gone into profit for some pips, the stoploss is trailed near to the current price, if the price tries to reverse, the trade will be closed immediately in profit. Thus the trailing stoploss closes out a trade-in profit and provides an optimum exit point. Let’s take a look at the below picture for a better understanding of the Trailing stoploss strategy. Where to Use Trailing stoploss? The trailing stoploss is used in financial trading such as forex trading, cryptos, and stocks trading etc. The trailing stoploss is used where traders are unsure about how long the price will move and they could not decide Takeprofit level. The trailing stoploss is used where the market often reverses after some pips go into profit. The trailing stoploss is used when traders want to lock some profits so, that their trade does not