Equally, however, the protection they provide is limited in that they carry no guarantee to protect your position against slippage should the market gap. That level of protection is only available through Guaranteed Stops.
How Trailing Stops workThe unique benefit of these Stops is that they automatically adjust – in incremental stages and on conditions which you have set – to mirror market movements.
So you needn’t watch the market and adjust your Stops when markets are moving in your favour, as a Trailing Stop does it for you. In this manner they help to lock in the profits on your trade, without requiring constant attention and amendments from you.
Of course, as these are Non-Guaranteed Stops, you can amend Trailing Stops on your open position - or even remove them - at any point.
Setting up a Trailing StopTo use Trailing Stops, you must first activate them on your account on the trading platform. To do this, simply:
- Go to Preferences (in My Account)
- Select 'Allow Trailing Stops'
- Accept the special terms and conditions
- Click 'Set Preferences'