I trade on IG at the moment, and my strategy involves using trailing stop losses, but on some forex pairs on IG it only updates the trailing stop once price has moved by 5 pips or more.
I was wondering if there are any brokers that move the trailing stop loss more quickly, or if not why this may be the case?
Yes, there are.
Every broker I have ever used starts moving a trailing-stop (unless instructed otherwise) with the first price movement, i.e. if you set it to trail “pip-for-pip” then as soon as the price moves one pip (the right way!) the trailing-stop also moves one pip. Even in Metatrader (hardly a “sophisticated” trading-platform, to put it politely!) you can do this,
Decent trading platforms give you the option of starting the trailing-stop “straight away”, or starting it “after some specified number of pips of price movement” or “moving it to breakeven after some number of pips and then trailing from there” or “moving it to breakeven plus or minus some specified number of pips, and then trailing it from there,” or “moving it to breakeven plus or minus some specified number of pips and then sitting there, and then after some further number of pips starting to trail.”
All of these functions (which are called Auto-Breakeven, Auto-Trail, and Auto-Breakeven-with-Autotrail) are pretty basic parts of “trade management”, and if your trading platform or broker doesn’t have them available, I respectfully suggest changing either broker or trading-platform or both, if you want to use trailing stops. What you’re asking for is commonplace and basic.
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Ahh ok this was really helpful thank you!
I will definitely have a look at using another broker then because I thought it was a bit strange that it didn’t do it pip by pip.
Thanks for explaining all the other features as well!
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