What is Difference between Stop Loss and Trailing Stop?
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Thread: What is Difference between Stop Loss and Trailing Stop?

  1. #1

    What is Difference between Stop Loss and Trailing Stop?

    These two options stop loss and trailing stop looking same.There is any difference between stop loss and trailing stop.Stop loss is saving us from big losses.what is trailing stop and how we can us it.This option has any benefit during trading.

  2. #2
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    This is the simplest of it all, the stop loss is a permanent way to stop the loses that the trader is incurring in the business, and the trailing stop loss is the temporary point that could be shifted in pips as he trader demands. The trailing stop loss will be effective in stopping the loss too, but it is never ab rigid point of working.

  3. #3
    By placing stop loss we are locking the trade to a particular point which when get hit the trade will be closed permanently, but by placing trailing stop we are allowing our stop loss point to move and trail the stop, means if we have set stop loss at certain value and taken a trailing stop of 20 pips so to every positive shift stop will move forward.

  4. #4
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    stop loss will close our order when the market price meet and touch the level or number of pips , and this is maximum loses which we have set as the risk per trade and it will protect our balance from unwanted situation, and about trailing stop loss, if the order run at floating positive and still move up or continuously, then stop loss will move and follow it based on how much pips we have set behind the market price, then it will lock our profit with automatically and then we do not lose them if the market move back and against the orders and touch the level

  5. #5
    Yes of course there is difference between stop loss and trailing stop. stop loss is used to close a order in a particular point in which point you set it. it is more simple .and the trailing stop is used to shift our stop loss. when market shift another position to positive points then this will save our calculated profit and move to a forward position. this means if market goes upper and upper and suppose move to 120 pips and again bounce back to 120 pips but you can take 100 pips.am i clear?

  6. #6
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    Quote Originally Posted by cozard007 View Post
    This is the simplest of it all, the stop loss is a permanent way to stop the loses that the trader is incurring in the business, and the trailing stop loss is the temporary point that could be shifted in pips as he trader demands. The trailing stop loss will be effective in stopping the loss too, but it is never ab rigid point of working.
    Thanks for your wise comments. Actually I had no idea about trailing loss, through this forum I came to know about it. Normally I am very familiar with SL and TP as I am always using it in my trading. Trailing loss is a new item to me, through this thread learned about it and another lesson added in my experience basket.

  7. #7
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    Stop loss and trailing stops are both different types of orders available to traders on there platform mainly for the purpose of risk management.stop loss is an order placed on an open order at a predetermined price level you wish your entry should be closed if your entry goes against you while trailing stop us placed to trail your entries that are on a winning side, secure your capital and profits.

  8. #8
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    Yes when you put a stop to your position then you probably as a swing trader look for targets and when you got your first target then that stop locks your first position at breakeven plus 10 or 20 which ever you use depending on the target

    regards

  9. #9
    Stoploss typically used to limit our losses in forex trading, while the trailing stop useful to lock in profit that we get in forex trading. So trailing stop only works when we are already getting a profit only, if we do not make a profit then trailing will not work.

  10. #10
    trailing stop is used to increase the profits but it must be used wisely. If we did not used it properly then we will get less profit. It is helpful for the new traders because they dont know how to put proper take profit and stop loss in trading. Stop loss is the tool which controls our loss and avoid us from blowing of trading account.

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