What is the effect of the trailing stop-loss order?
This order enables the investor to state the maximum possible loss without sacrificing the profits. Such orders help investors to lock in profits if the share price moves in their favour as the stop loss price will automatically recalculate to maintain the trailing gap amount.
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 ...
What is a stop-loss order?
It is an order to exit an open position when it reaches a specified price. These orders are designed to limit the investor’s loss.
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 ...
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 effect of a stop-loss order?
These orders can protect the investor against the sudden movement in the security’s price. Using these orders you can define the downside for your position