Taking profit is almost hit but the price reversed?
In hedging and back direction again Cheeky right?
When you open positions and positions you are profit but not touch the take profit that has been determined, what are the chances that will happen?
First, the price continues and your taking profit is touched. Profit is yes?
Second, the price reverses the direction and the profit you have got turned into a loss or even hit stop losing very sad.
Events like this we can avoid with the use of Trailing Stop. What is trailing stop and how to install it? Let’s learn the application of Trailing Stop in FOREX trading.
What is a Trailing Stop?
Trailing Stop is a feature of traded that serves to lock your profit by making your stop loss keep moving up near the current price if you put in the position Buy, and will continue to fall near the current price if installed in the Sell position.
New trailing stops will be active if your position is already profitable. With such a way of working, you do not need to worry anymore with changes in price direction that undermine the profit already obtained. Because by installing trailing stop you will not loss even if your stop loss is touched because the stop loss is already past the opening price.
Read Also: How to Win in the cfd trading
So essentially, trailing stop function to install stop loss that can change automatically close to current price so if stop loss untouched, your trading result will still profit because stop loss has passed the price of opening position.
How to install Trailing Stop
To install the trailing stop, right click on the open position, on the shortcut menu that appears select Trailing Stop. Then set the stop loss stop level for how many pips. In traded that uses 4 decimal digits, the minimum distance is 15 pips, while for 5 decimal digits at least 50 pips.
So you can see here, even though open is liquidated because of the stop losing, but the end result, you still get a profit of 400 pips.