The trailing stop function is currently available for CFD accounts.
Definition
A trailing stop is a stop loss that automatically adjusts the stop loss when the market price moves in your favor.
The trailing stop will only rise after a new peak is established. Once the trailing stop moves up, it cannot move down. Trailing stop loss is more flexible than fixed stop loss. It will automatically track the price direction of the stock without having to manually reset the stop loss level like fixed stop loss. Note that slippage may still occur.
Example
Let's say you think Bitcoin is entering a bull cycle, so you decide to buy Bitcoin at $6,000 and set the trailing stop at $5,500 or $500 below the opening price. Every time the price hits a new high, your Trailing Stop moves with it. Assuming Bitcoin hits a high of $6001, your Trailing Stop will rise to $5501, stop orders trigger execution. When you close your position, you are still profitable.
If you use a basic stop loss in your trade, your position will be closed at $5500 and your trade will lose money.
