If the security price rises or falls in your favour, the stop loss % moves with it. If the security price rises or falls against you, the stop loss % stays in place.
For example, You can put a trailing stop of 5% on your investment
Condition 1: If price rises by 10% from entry condition and from peak if stock price dropped by 5% then stock would be sold automatically. Thus, it offers you a profit protection of not losing more than 5% of your investments. Trailing limit here is the trail distance from the last peak before fall.
Condition 2 : If the stock price dropped by 5% from entry condition, then your stock would be sold automatically. here it will safe guard your maximum loss and works same as Stop Loss %.
If one had entered the market with a sell, then issuing a buy order only does the opposite, i.e., prices are followed downwards.
Looking for anything specific article which resides in general queries? Just browse the various relevant folders and categories and then you will find the desired article.Raise a ticket