What is moving stop loss?

Move stop loss

Moving stop loss is another stop loss function. The stop loss price is adjusted as the market moves. Moving stop loss allows traders to set the stop loss and then set the moving stop loss.

Example-moving Stop Loss

The transaction price of EUR/USD is at 1.2100/03.
You think EUR/USD will increase and you will buy at 1.2103.
In order to control risks, you decided to set a stop loss in 1.2083.
Your stop loss is set to 30.
If EUR/USD increases

Two minutes later, as you expected, EUR/USD rose to 1.2153/56.

Your new stop price is 1.2113 (1.2083 + 0.0030 ).

If the market is unfavorable to your position

If the EUR/USD falls below 1.2083 in 2 minutes, you will be stopped at 1.2083.

Suggestions

Moving stop loss is a very good trading tool, especially when the price is high, it can ensure your profit.