About trailing stop

Beginner Questions
1

hi guys,

how does a trailing stop work ?

Date/Time: 09/10/2012 at 10:26 PM
Sell 100 units of EUR/USD at 1.27724
Total Trade Value: $127.72
Margin Involved: $1.28

Pending Exit Conditions: Yes
Trailing Stop at 5 pips

entry: 1.27688
exit : 1.27724
Profit(pips) : 3.6

at what stock price does the system exit the trade ?
i think the system exit the trade at a stock price which is 5 pips below 1.27724,
so 1.27724 - 0.0005 = 1.27674

shouldn ’ t the profit be 5 pips insted of 3.6 ?

2

how much did you pay for the spread at the time… im assuming 1.4 pips… Trailing stops will only be triggered once the price was hit. so for you to actually get 5 pips profit youd need price to move. 6.4 pips in your favor to give you the 5 pips profit.

3

it works like a dynamic stop loss. :wink: