A trailing stop is a stop that adjusts automatically in response to market movement. This means that it will follow your position if the market moves in your favor, but it will lock in your profits and close the position if the market moves against you.

A trailing stop is set in the same way that a normal stop is set via the deal ticket. When creating a trailing stop, you must first define the stop distance, as with any other stop, as well as the trailing step. The trailing step is the number of points the market must move in your favor before moving your trailing stop.

Trailing stop only works when we run MT4 or MT5 trading platform, it will not work when we close application or shut down computer.

A trailing stop is a type of stop-loss order set at a predefined percentage or dollar amount below the market price of a security. Unlike a fixed stop-loss, a trailing stop moves with the market price when it is favorable for the investor. If the price of the security increases, the trailing stop price rises accordingly, maintaining the set distance. However, if the price decreases, the stop price remains unchanged. This mechanism helps investors lock in profits while still providing a safety net to limit potential losses. Trailing stops are particularly useful in volatile markets, offering a dynamic approach to risk management and allowing traders to capitalize on upward trends while protecting against downside risk.