What's Difference between Stop Loss and Trailing Stop? - Stop Loss vs Trailing Stop

A stop loss is set at a particular level and this level remains constant while for a trailing stop loss the stop loss level keeps moving with the change in price - trailing stop is updated as the price moves.

What's Stop Loss on MT4?

A stoploss order is an order used in forex trading to close an open trade if the trade moves against the trader's position by a certain number of pips.

Once stoploss order is set at a specified level, this stoploss order will automatically close-out the open trade once the chart gets to this stoploss order price level. Stop Loss order is used in forex money management so that to prevent further losses if a trade is going against the direction of the trader's open trade position.

What's a Trailing Stop Loss?

A trailing stop loss is a stop loss levels that keeps adjusting itself automatically by a set number of pips once the market moves in direction of the trader's open trade position by a number of pips.

For example the trailing stop can be set at 30 pips & set to adjust itself to 30 pips automatically once the currency pair moves up by 5 or 10 pips. This means that this trailing stop loss order will keep trailing the price as long as the price keeps moving in direction of the trader's open position.

This trailing stop loss will close the order once the market starts to retrace and it retraces to the level of the most recent set trailing stop loss level.