Trailing Stop Loss (TSL) is an exciting feature we have added in response to feedback from our valued trading community.
A trailing stop loss sets the stop-loss order at a fixed amount of pips above or below the market price, depending on whether the position is SELL or BUY. As long as the market is moving in your favor, the stop loss will move with it, maintaining the same locked-in pip distance from the current market rate.
For example, if you set TSL for a BUY position, the stop loss will rise with the market in one-pip increments. This is why it's called a 'trailing' SL; as the price rises, the stop loss rises with it. However, if the market is moving in the opposite direction i.e., if the price is falling, the stop loss will not change and a close order will be submitted when the stop loss rate is reached.
You have the option to set a Trailing Stop Loss as soon as you open a trade or at any time thereafter. All you need to do is click 'Stop Loss' in the Open Trade window and the TSL checkbox will appear underneath it. Every time you edit your Stop Loss manually while TSL is enabled, the pip distance between your stop loss rate and the current market rate will be updated accordingly.
For a Buy position, your TSL will rise with the price in 1-pip increments and for a Sell position, it will fall with the price in 1-pip increments. It is important to bear in mind that your stop loss will not change if the market is moving against you.
If at any point you decide to enable or disable TSL for an existing trade, simply click on the blue settings icon at the far right of the trade line in your Portfolio in order to bring up the Edit Trade window.
Watch our video on the eToro Academy to find out more: