How is Smart Trail different from a regular stop-loss in FYERS? (With Example)

How is Smart Trail different from regular stop-loss?

A regular stop-loss remains fixed at a set price, meaning it doesn't change as the market moves. In contrast, Smart Trail automatically adjusts the stop-loss level as the price moves in your favour. This helps you lock in profits and reduce the risk of losing gains in a trending market.

Example:  

Let’s say you buy a stock at ₹100 and set a regular stop-loss at ₹90. If the stock price rises to ₹120, your stop-loss remains fixed at ₹90, so you risk losing the ₹30 profit unless you manually adjust the stop-loss.

With Smart Trail, if the stock rises to ₹120, the stop-loss automatically moves up along with it, for example, to ₹110, locking in a ₹10 profit even if the stock price reverses. If the price continues to rise, the stop-loss will keep adjusting, ensuring you lock in more profits as the market moves in your favour.

To know how to place Smart Trail, kindly refer to this article.

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