What a trailing stop is
A stop loss is an order that closes a position at a set price to limit a loss. A trailing stop moves that stop loss behind the price as the trade moves in your favour. It keeps a fixed distance from the current price and never moves back.
- On a buy position, the stop loss moves up as the Bid price rises.
- On a sell position, the stop loss moves down as the Ask price falls.
- When the price turns against you, the stop loss stays where it is. If the price reaches it, the position closes.
If you are new to stop orders, read Stop loss and take profit first.
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Why the terminal must stay open
The built-in trailing stop in MetaTrader is client-side. Your terminal on your computer watches the price and sends a new stop loss to the trade server each time the price moves far enough.
What this means in practice:
- If you close the terminal, shut down the computer or lose the connection, the trailing stops.
- The last stop loss already sent to the server stays in place and still protects the position.
- The stop loss only resumes moving when that terminal is running and connected again.
- A trailing stop set in one terminal does not follow you to another device. The mobile apps and the web terminal do not run it. Check your own build if you are unsure.
How to set a trailing stop in MT5
The trailing stop applies to an open position, not to a pending order.
- Open the Toolbox window (View menu, Toolbox) and go to the Trade tab.
- Right-click the open position.
- Choose Trailing Stop in the menu.
- Pick a preset distance from the list, or choose Custom and type your own distance in points.
To turn it off, open the same menu and choose None. The current stop loss stays on the server.
How to set a trailing stop in MT4
The steps in MetaTrader 4 are almost the same:
- Open the Terminal window and go to the Trade tab.
- Right-click the open order and choose Trailing Stop.
- Select a preset distance or Custom, then enter the distance in points.
For other differences between the platforms, see MT4 vs MT5.
Choosing the distance
The distance is set in points. A point is the smallest price step of a symbol. On many symbols a pip is made of several points, so check the number of digits in the contract specifications before you type a value.
Things to know:
- The stop loss does not start moving until the position is in profit by at least the trailing distance.
- A distance that is too tight can close the trade on normal price noise or when the spread widens.
- A distance that is too wide protects less of the open profit.
- The server may reject levels that are too close to the price. The minimum is shown as the stop level in the contract specifications.
The Risk management page explains how stop distance and position size work together.
Running the trailing stop on a VPS
A VPS (virtual private server) is a remote computer that runs around the clock. If you run the full MetaTrader terminal on a VPS and set the trailing stop there, it keeps working while your own computer is off.
MetaTrader also offers its own virtual hosting service. Before you rely on it, read its description of what is moved to the hosted terminal. Some traders use an Expert Advisor for trailing instead, because it gives more control, such as trailing only after a set profit or by ATR.
Limits and risk
A trailing stop is still a stop loss. When the price touches it, the position closes at the next available price. In fast markets or at a price gap, the fill can be worse than the stop level. Leveraged CFD and forex trading can lose money fast, and a trailing stop does not remove that risk. You can practise the settings on a demo account first.
Frequent questions
Does the trailing stop work when MT5 is closed?
No. The terminal must stay open and connected. The last stop loss already sent to the server still stays in place.
Can I set a trailing stop on the MT5 mobile app?
The built-in trailing stop is a desktop terminal feature. The mobile apps do not run it.
Can I add a trailing stop to a pending order?
No. It applies only to open positions. Set it after the order is filled. See Pending orders.
Why does my stop loss not move?
The position is not yet in profit by the trailing distance, the terminal is offline, or the trailing stop was set in a different terminal.
Is a trailing stop the same in MT4 and MT5?
Yes, it works the same way in both. Only the window names differ: Terminal in MT4 and Toolbox in MT5.
