This lesson introduces the Trailing Stop order, it’s available for a wide range of products, including U.S. equities, options, futures, forex, and certain non-US securities.
It is definitely a valuable tool for managing potential losses in your trades on TWS Mosaic. A Trailing Stop allows you to define a maximum loss limit without restricting potential gains. It is not a surprise that the market can move in different and unexpected ways, so in that sense it is a highly useful tool. The stop price automatically adjusts by a specified trailing amount, effectively protecting your profits. However, if the price falls, the stop price remains unchanged, potentially limiting losses.
Remember, the trailing stop adjusts only in your favor, ensuring it never triggers a loss greater than your initial definition.
By incorporating Trailing Stop orders into your trading strategy, you can enhance your risk management and potentially safeguard your profits within TWS Mosaic.