Trailing stop

A trailing stop is a stop loss that moves automatically as your trade goes your way, staying a set distance behind the price. If the market keeps moving in your favour, the stop follows and locks in more gain; if it reverses, the stop holds and closes the trade.

In MT4 you set a trailing stop by right-clicking an open position in the Terminal and choosing Trailing Stop, then a distance in points. Note that MT4’s trailing stop runs on your computer, so the terminal must stay open for it to keep working.

It’s a handy way to let winners run while protecting profit — pair it with a take profit target.