Trailing stops are order types used by traders in order to help lock in a predetermined amount of profit as a trade moves into profit. For example if a trailing stop is 20 pips that would mean the intial stop is -20 pip. Once a trade moved 30 pips into profit the stop loss would now be 10 pips.
A very type of popular order is a buy stop limit or a sell stop limit order which allows a trader to buy at a price level above market once price reaches that level or sell at a price level that is below the current market price once price reaches that level.
Today forex brokers are providing more choices than ever to traders and investors when it comes to the types of trade orders they offer as well as the leverage and unit sizes traders can trade with.
There are many different types of trade orders that help traders come up with very creative ways to approach the forex markets and employ some killer forex trading systems profiting from the foreign exchange markets.
