A trailing stop is a stop loss that follows price as your trade moves into profit, locking in gains and never sliding backwards. In MetaTrader 4 you set it as a distance in points behind the market. It's quick to add — but it works differently from a normal stop loss in one important way.
What a trailing stop does
Say you're long and set a 30-point trailing stop. As price rises, MT4 keeps the stop loss 30 points below the highest price reached. If price keeps climbing, the stop climbs with it; if price falls back 30 points, the trade closes — banking the locked-in gain. It only ever moves in your favour.
How to set a trailing stop
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Open the Terminal's Trade tab
Press
Ctrl+Tand find your open position in the Trade tab. -
Right-click the position ▸ Trailing Stop
Right-click the trade and hover Trailing Stop.
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Choose a distance in points
Pick a preset distance in points (e.g. 15, 20, 30…) or Custom….
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Leave MT4 running
As price moves your way, MT4 trails the stop loss behind it — never backwards. Keep MT4 open (see below).
The big caveat: it's client-side
Unlike a standard stop loss (which lives on the broker's server), MT4's trailing stop runs inside your terminal. Close MT4, sleep your computer, or drop your connection and it stops trailing — the last level it set remains as a normal stop, but it won't move any further. If you need a trailing stop to run around the clock, keep MT4 running on a VPS. A trailing stop manages risk; it doesn't guarantee an exit price, and most retail traders lose money. Nothing here is financial advice.
Try a trailing stop on a demo
Open a free MT4 demo and watch a trailing stop manage a winning trade with virtual money before using it live.
⚠ Trading forex and CFDs is high-risk and most retail traders lose money. This is not financial advice.
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Related
Start with a fixed stop loss & take profit, learn to place a trade and close one, and to keep it running 24/5 see the MT4 VPS guide. Term unclear? See trailing stop.
Frequently asked questions
What is a trailing stop in MT4?
A trailing stop automatically moves your stop loss in your favour as the trade profits, locking in gains, and never moves it the other way. You set it as a distance in points behind the current price; if price reverses by that distance, the trade closes.
How do I set a trailing stop in MT4?
Open the Terminal (Ctrl+T), go to the Trade tab, right-click your open position, hover 'Trailing Stop', and choose a distance in points (or Custom). To remove the trailing stop on that trade choose 'None'; 'Delete All' removes it from every open position at once, so use it deliberately.
Does an MT4 trailing stop work when the platform is closed?
No — and this is the key limitation. MT4's trailing stop runs inside your terminal, not on the broker's server, so it only trails while MT4 is open and connected. If you close MT4 or lose connection, it stops moving; the last stop-loss level it set stays on the server, but it won't trail any further. Traders who need it 24/5 run MT4 on a VPS.
What distance should I use for a trailing stop?
There's no single right number — too tight and normal noise stops you out early, too wide and you give back more profit. Many traders base it on recent volatility (for example the ATR) rather than a fixed figure. Test settings on a demo for your instrument and timeframe.
What's the difference between a trailing stop and a stop loss?
A stop loss is a fixed level held on the broker's server. A trailing stop is a rule that moves that level for you as price runs your way — but only while MT4 is running. Use a fixed stop loss as your baseline safety net and a trailing stop to manage a winner.
Trading foreign exchange and contracts for difference (CFDs) carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. You could lose some or all of your deposited funds; do not trade with money you cannot afford to lose. Past performance is not indicative of future results. Nothing on MT4Download.com is financial, investment, or trading advice. Consider your circumstances and seek independent advice if needed.