Trailing Stops
Our Trailing Stops track your profitable positions automatically – and close your trade should the market move against you.
Part of our full range of Stop* and Limit Orders, Trailing Stops prevent you having to monitor and move your stops constantly. You set the conditions for your Stop to move automatically, should the market move in your favor. Trailing Stops can be used on long or short trades, helping you to secure your gains as the market moves.
How does it work?
When you open your position you specify two numbers:
- Stop distance – how far away from the opening level your Stop is placed
- Step size – the size of the increments by which the Stop can move
A Trailing Stop trails the market at a specified distance, allowing you to ensure 'locked-in' profits should a favorable price trend suddenly reverse. The 'Step' size governs the 'elasticity' of your Stop: it is the number of points by which an instrument has to move in a profitable direction for you before your Trailing Stop moves another increment.
See an example of how Trailing Stops work.
Using a Trailing Stop
There is no charge for setting a Trailing Stop. You must however first activate Trailing Stops for your account on PureDeal. To do this, simply go to Preferences (in My Account), select 'Allow Trailing Stops' and accept the special terms and conditions. Then click 'Set Preferences'. You will now find a Trailing Stop check-box on your Deal Ticket.
Trailing Stops can be added when placing a trade, or attached to open positions at a later stage. Please note they are not 'Guaranteed': like standard Stops they may be subject to 'slippage' in illiquid or fast-moving markets.
For more information please contact our dealers who will be happy to answer any questions.
*A stop order may not limit your risk in times of rapid market movement. In such cases the market may move through your stop in which case your order will be filled at the best available price.