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If you are a new or expert trader, you might have come across the statement, “cut your losses short, and let your profits run.” Nevertheless, if it is your first time hearing it, then you need to implement this wisdom to your trading. Using a trailing stop loss, which is always offered by the best forex brokers in the market, will help mitigate your risk.
Trading the forex market is never an easy thing. Without the right broker, every effort can be wasted. Therefore, we have gathered the brokers with trailing stop loss for your forex trading in this write-up. In this article, we provide a summary of these brokers for you to decide on your trading.
Table of contents
Trailing Stop Loss: What is it?
To understand what trailing stop loss is all about, you need to know what a stop loss is. A stop loss is an order you set when you want to buy or sell a particular asset once it reaches that price. The stop loss is designed to minimize your losses once the price goes against your prediction.
However, a trailing stop is a modification of a stop loss, which you can predetermine at a particular value or percentage. Unlike the stop-loss order, the trailing stop loss locks your profit and closes your position in profit once it doesn’t go your way. If the price keeps going upward, the trailing stop loss keeps increasing pending when it reaches your take profit level or hit the trailing stop loss level.
Top Ten Brokers with Trailing Stop Loss
Today, the number of brokers in the financial industry is on the rise. These brokers offer several different features to attract clients to their platforms. However, whatever feature you are looking for a broker, an important thing to consider is a trailing stop loss. Here is a list of the best top forex brokers.
Round-up of the best brokers with trailing stop loss
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money
|Trailing Stop||Guaranteed Stop Loss||Minimum Deposit|
Trailing Stop Loss vs. Trailing Stop Limit
Trailing stop loss and trailing stop limit are used in two different situations. A trailing stop loss allows you to create a market order where you get kicked out of the market once the price reaches the set level. Most times, a trailing stop loss usually ends with a loss on that particular trade.
However, a trailing stop limit is an order that triggers a limit order immediately it reaches the stop price value. It means your order only executes once the price reaches the current limit or a better limit level.
It can be confusing for new traders, but trailing stop limit orders offers better control over trades than trailing stop loss. Furthermore, using a trailing stop limit is riskier because you can lose your capital if the price falls abruptly.
Pros and Cons of Trailing Stop Loss
- A trailing stop-loss allows you to minimize your loss peradventure price moves against your initial direction
- It doesn't come with any additional cost
- A trailing stop-loss order is flexible
- It allows your trade to stay open while the price moves in your position
- It is your best bet when the market price moves towards your favor
- In a very volatile market, trailing stop losses can become very risky
- There is no guarantee that you will receive the price of the stop-loss order
- The price markers don't always move perfectly
Brokers with Trailing Stop Loss FAQs
What is the difference between a Trailing Stop Loss and a basic Stop Loss?
The primary difference between a trailing stop loss and a basic stop loss is that once the price goes in the direction you predict, the trailing stop loss follows the market. However, a basic stop loss remains at that level even when the price is moving upward.
Do many brokers offer the Trailing Stop Loss feature?
The forex market comprises different brokers that offer unique features and products. An essential feature that most brokers offer is the trailing stop loss feature.
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