Exness offers trailing stop-loss orders, a valuable tool for managing risk and locking in profits in your forex trades. Here’s a breakdown of how to set up and utilize trailing stops effectively on the Exness platform:
How to Set Up a Trailing Stop on Exness (Using MT4/MT5 Platform):
1. Open Order Window:
- Locate the open trade for which you want to set a trailing stop.
- Right-click on the specific trade within the “Trade” tab of your MT4/MT5 platform.
2. Access Trailing Stop:
- From the right-click menu, select “Trailing Stop.”
3. Define Trailing Parameters:
- You’ll be presented with two options:
- Points: Enter the desired trailing distance in pips. This represents the number of pips the stop-loss will trail behind the current market price.
- Custom: This allows you to set a specific stop-loss price level.
4. Activate Trailing Stop:
- Choose your preferred option (points or custom) and enter the desired value.
- Click “OK” to activate the trailing stop for your trade.
Visualizing Trailing Stop Movement:
Imagine you have a long position (buying) on EUR/USD at 1.1000. You set a trailing stop of 20 pips.
- If the price of EUR/USD rises to 1.1050, your trailing stop will automatically adjust to 1.1030 (1.1050 current price – 20 pips trailing distance).
- This ensures you lock in some profit if the price reverses.
- The stop-loss will only move up (in this long position example) as the price goes in your favor. It won’t move down (potentially exiting you prematurely) due to minor price fluctuations.
Important Considerations:
- Trailing Stop Activation: Trailing stops might not be available for all order types or instruments offered by Exness. Check platform specific details.
- Platform Restart: Trailing stops might not be saved automatically if your trading platform crashes or restarts. Consider using the Exness VPS service for uninterrupted operation (check availability and costs).
- Order Monitoring: Don’t solely rely on trailing stops. Regularly monitor your trades and adjust the trailing distance or stop-loss level manually if needed based on market conditions.
Additional Tips:
- Start Small: When using trailing stops for the first time, begin with a conservative trailing distance to avoid getting stopped out too quickly.
- Volatility Matters: Adjust the trailing distance based on the instrument’s volatility. Use a wider stop for volatile markets to avoid premature exits.
- Combine Strategies: Trailing stops work well with other risk management techniques like proper position sizing and take-profit orders for a comprehensive approach.
By understanding how to set up and use trailing stops effectively on Exness, you can potentially improve your risk management and potentially achieve better trading results. Remember, practice using them in a demo account before risking real capital, and prioritize a balanced approach to risk management in your forex trading journey.