Trailing Stops *

Stop-Loss Order

Stop-Loss OrderThis type of order will help you manage your risk by preventing one trade from wiping out an account.

This order automatically closes your entire position at the best available price once a certain price is reached. A Stop-Loss Order can only be set at a price less favorable than the current price.

Example: If you buy the EUR/USD at 1.47739 and want the position to close automatically if it moves 100 pips against you, you would set a Stop-Loss Order at 1.46739. (If you are short, you would set the Stop Order above the current price, e.g., at 1.48739.)

To set a Stop-Loss Order: when you open your trade with a Market or Entry Order, click on the Advanced bar:

Alternate route: You can also enter a Stop-Loss Order by selecting a trade in the Open Positions window, and clicking on the Stop button of the desired open position.

Open Positions Stop

Once a Stop has been set, you will see the Stop price in the Stop column in the Open Positions window.

Open Postions Stop

If the Close price touches 1.49380, the entire trade will be automatically closed, with the loss subtracted from your balance.

Dynamic Trailing Stop

The trailing stop feature allows traders to place a stop loss order, which automatically updates to lock in profit while the market moves in your favor. Trailing stops can be placed by clicking the “advanced” button in the “Create Market Order,” “Create Entry Order,” or “Stop Order” window. Please keep in mind that this feature does not protect against losses.

Trailing stops in the FX Trading Station are dynamic, meaning they continually follow the market as it moves in your favor…even when the market moves only 1/10th of a pip. To set a trailing stop, you must first set a stop. This is the initial level where your stop order will “start from.” To make the stop order a trailing stop, simply check the “Trailing Stop” box. Then, for every 1/10th of a pip the market moves in your favor, the stop will move the same amount. So, if you bought, your stop will move up when the currency pair rises. If you sold, your stop will move down when the currency pair falls.

Example: You buy EUR/USD at 1.5492(1) and place a 20-pip stop at 1.5472(1). You then check the “Trailing Stop” box to activate the trailing stop.

The EUR/USD then rises by 30.2 pips to 1.5522(3) with every single 0.1 of a pip, your stop automatically moves up to 1.5502(3), locking in your profits. The stop will continue to rise if the EUR/USD rises. If the EUR/USD falls, the stop will remain at 1.5502(3). If the EUR/USD falls to 1.5502(3), your stop will execute, and close your trade.

Re-Cap of Trade
Market Order: 1.5492(1) with Stop 1.5472(1)
If Market goes up 30.2 pips on EUR/USD
Then the new stop price with Dynamic Trade Stop will be:
1.5492(1)
+ 30(2)
1.5472(1)
+ 30(2)
1.5522(3) New Market Price 1.5502(3) New Stop Price

Create a Market Order

Goal: Although trailing stops do not protect you from occurring losses, stop will automatically move up when the market moves in your favor to lock in profits.

Important: Pay attention to your stop price.

* The stop and limit features are not functional on the Forex Captial Markets LLC FX Trading Station as they are not compliant with the National Futures Association (NFA) Compliance Rule 2-43
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