Tags: Stop-lossTake-profit 3 min read Trailing Stop Loss is an often overlooked, yet extremely helpful feature.
It can help you automate the to make quick money process, manage risks and make the overall trading experience more consistent.
Moreover, this feature can help you expand the pool of available technical tools.
Even if you have never heard of this feature before, make sure to read this piece, as it will probably make your trading journey more diverse and offer new opportunities along the way. As you probably already know, IQ Option clients have an opportunity to close their deals automatically when the price level reaches a certain predetermined level.
It can be used to take profit when there is a risk of a trend reversal.
As many have already noticed IQ Option has added Forex to its collection of trading tools. Getting profit from the deal at the right time is as important as to determine the optimal moment of its stop. Price fluctuations is an integral part of the life of the market, and what once seemed like a positive trend in one moment can totally opposite turn into a sudden decline. Common belief says that it is always better to take profit now rather than wait and risk losing possible earnings.
The same feature can also be used to stop loss. Usually a combination of both is applied, as it helps binary options with stop loss manage risks and take the money when the time is right.
How exactly does trailing stop loss work?
When the trend is in your favor, the deal will not be closed until the current price goes below the opening price. In other words, the trade will close when it has already generated a certain level of profit, but the trend is about to reverse. You could, therefore, use Trailing Stop Loss when the trend moves in the direction you want to but can change its direction at any moment.
Stop Loss Function Explained - IQ Option Forex
Please note that the feature will work even if you close the application. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Tagged in.