JTrader
Guest
- Messages
- 5,741
- Likes
- 507
http://www.learnmoney.co.uk/spread-betting/stop-losses-7.html
Hi
by definition, with a Trailing Stop Loss of 80pips -
eg. 1 -
short EURUSD at 1.3307. Price falls to 1.3306, then reverses to 1.3386. TSL80 should DEFINATELY be activated at 1.3386. Does this make sense?
eg. 2 -
short EURUSD at 1.3307. Price does not fall any lower than 1.3307 but then reverses to 1.3387. Should the TSL80 be activated at 1.3387, because price didn't drop any further than/after the entry price, before reversing 80 pips.
Therefore does price need to advance in the direction of your trade by one or more pips (1 pip down if short, or 1 pip up if long) before reversing to the TSL level, in order for the TSL to be activated?
Thanks a lot.
Trailing Stop Losses - Explanation
* A trailing stop is where you move the stop level higher as the underlying stock or spread bet instrument moves higher
* If you were using a 25 point trailing stop loss on the FTSE 100 and you buy at 4200, the stop loss is 4175
* The index then moves up to 4250, and so you move the stop loss up to 4225
* The index then falls back to 4235 before powering ahead to 4300, and the 25 point trailing stop is now 4275 and so on
TOP 3 STOCKMARKET SEARCHE
Hi
by definition, with a Trailing Stop Loss of 80pips -
eg. 1 -
short EURUSD at 1.3307. Price falls to 1.3306, then reverses to 1.3386. TSL80 should DEFINATELY be activated at 1.3386. Does this make sense?
eg. 2 -
short EURUSD at 1.3307. Price does not fall any lower than 1.3307 but then reverses to 1.3387. Should the TSL80 be activated at 1.3387, because price didn't drop any further than/after the entry price, before reversing 80 pips.
Therefore does price need to advance in the direction of your trade by one or more pips (1 pip down if short, or 1 pip up if long) before reversing to the TSL level, in order for the TSL to be activated?
Thanks a lot.