Following quit is an order which major function is an
automatic servicing of open place with lasting moving of stop-loss stage based
on cost activity.
Work principle
Trader reveals a favorable place and places the range
from present cost to trailing quit in pips. If the cost goes up-wards, the
trailing quit tails after it instantly adhering to the set range. In situation
the cost goes down, then the trailing quit quotation continues to be on the
identify. In this way, a investor using trailing quit has an opportunity to
obtain maximum revenue at climbing cost with no respect to the set Take Profit
value. Furthermore, trailing quit is a reduction limiter.
For instance, investor reveals a buy place at the
cost of 1.3400 and places the trailing quit value by 50 pips back, i.e. at
1.3350. In situation the cost starts moving up-wards and surpasses the level of
1.3400, trailing quit follows it instantly monitoring the set gap of 50 pips
from the present cost. That means, if the cost variations 1370, the trailing
quit changes to 1320.
If the cost turns down, the cost does not modify its
place.
As to sell place starting, trailing quit acts quite
opposite. Trader places it a few pips higher. At cost climbing down movement
the trailing quit changes according to the set size. With the up-going cost,
the trailing quit does not move.
Applying trailing quit in Forex functions a investor
will have to remove stop-loss purchases personally in line with business
revenue increase. Following quit places a stop-loss stage instantly at the
value the investor needs.
Trailing quit is mainly used by investors who run
pattern dealing, but have no possibility to track cost goes completely.
Following quit utilization is also reasonable at intraday business, when quick
reaction to any cost modify is required.
Worth bearing in mind that trailing quit works only
in an active dealing terminal. When the terminal is moved off the stop-loss is
set at its present identify.
