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.

    • Related Articles

    • Can I place a trailing stop-loss in FYERS?

      Yes, you can use the Smart Trail feature in FYERS to place a trailing stop-loss. This feature helps you manage risk by automatically adjusting your stop-loss as the market moves in your favour, while also allowing you to define a target price. Smart ...

    • How to place a Smart Trail order?

      To place a Smart Trail order in FYERS, follow these steps: Once you have an open position, go to the ‘Positions’ section. Click on the position you want to place the Smart Trail for and select Exit. Go to the Smart tab and click on Smart Trail. Enter ...

    • What is Smart Trail and how does it help?

      Smart Trail in FYERS is similar to a trailing stop-loss, helping you lock in profits by automatically adjusting your stop-loss as the price moves in your favour. As the market moves upward, the stop-loss level follows, ensuring your gains are ...

    • How to modify the stop-loss?

      In trading, stop-loss is one of the integral parts that help you in risk management. Generally, stop loss is placed along with the multi-legged orders such as Cover Orders and Bracket Orders. Once CO or BO is placed, you can easily modify the ...

    • What is the stop-loss trigger price?

      Stop-loss orders are designed in such a way that the order remains inactive until the last traded price reaches the limit order price. The stop-loss trigger price enables the user to define at what price the stop loss order should get activated. Once ...