What is Difference between Stop Loss Stock Order and 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 stocks price - trailing stop is updated as the stocks price moves.

What is Stop Loss Stock Order in MT4 Platform?

A stop-loss order is an order used in stocks to close an open trade if the trade moves against the trader's position by a certain number of pips.

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

What is a Trailing Stop Loss Stocks Order?

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

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

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