A new order type unique to the spread betting market
This is a relatively new order type that has again been
introduced to the market by the spread betting industry. This order
type is perfect for those clients who wish to spend time away from
their computer screen or mobile device but who wish to take
advantage of further positive market movements.
For example the current price of £/$ is 1.5600 and we place a
limit order to buy £5 per point of the £/$ if the price trades at
1.5590 with a trailing stop of 50 points.
We will only establish a new trade if the market trades down to
1.5590 and at that point we will automatically have a trailing stop
of 50 points added to our opening trade.
This means that if the market moves higher from the opening
trade level our stop loss will automatically move up so that
it is always 50 points below the current market level rather
than remaining at a level of 50 points below our original opening
trade price (as would be the case if this was simply a 50
point stop loss).
This allows the trader to be more flexible with his time and not
to have to continue to be on hand to move his stop loss up as the
market moves in his favour.
The ultimate aim of a trailing stop is to create a 'no lose'
trade where the stop loss ends up being at, or above, the opening