How to Use Trailing Stop Loss on Plus500?

A trailing stop loss is one of the most powerful risk management tools available on Plus500. It allows traders to lock in profits while minimizing risk automatically. Unlike a regular stop loss, which remains fixed, a trailing stop moves with the market price when your trade goes in your favor. This means you can capture more gains without constantly adjusting your stop loss manually.

If you’re new to Plus500 or looking to refine your trading strategies, this guide will take you step by step through using trailing stop losses efficiently. It will also cover common mistakes to avoid, advanced strategies, and real-world user experiences.

What is a Trailing Stop Loss?

A trailing stop loss is a type of stop order that automatically follows the price movement of an asset at a set distance. If the market price moves in your favor, the stop loss moves with it, maintaining the preset gap. However, if the price reverses, the stop loss stays in place and closes the trade when hit.

Example of a Trailing Stop in Action

1. You buy EUR/USD at 1.1000 and set a trailing stop 20 pips below (1.0980).
2. If the price rises to 1.1050, the stop loss moves up to 1.1030 (still 20 pips below).
3. If the price drops back to 1.1030, the stop loss triggers and closes the trade.
4. Result: You lock in 30 pips of profit, instead of getting stopped out at 1.0980.

This feature is especially useful in volatile markets, where sudden reversals can erase profits quickly.

Step-by-Step Guide: How to Set a Trailing Stop Loss on Plus500

Step 1: Log Into Your Plus500 Account

• Open Plus500’s web platform or mobile app.
• Sign in using your email and password.

Step 2: Choose the Asset You Want to Trade

• Browse the list of available markets such as forex, stocks, indices, commodities, or cryptocurrencies.
• Click on the asset you wish to trade (e.g., Tesla, EUR/USD, or Bitcoin).

Step 3: Open a Trade Position

• Click “Buy” (for long trades) or “Sell” (for short trades).
• Set the trade size in units or lots.

Step 4: Enable the Trailing Stop Loss

• Before confirming your order, look for the Stop Loss option.
• Check the box for “Trailing Stop” (this may be labeled as “Trailing Stop Loss” depending on the version of the platform).
• Set the trailing stop distance (e.g., 20 pips or $5 movement for stocks).

Step 5: Confirm and Monitor Your Trade

• Review your trade details, ensuring that your trailing stop is activated.
• Click “Open Trade” to execute the order.
• Your trailing stop loss is now active and will adjust automatically as the price moves in your favor.

Beginner Tips for Using Trailing Stop Loss on Plus500

For beginners, using a trailing stop loss effectively can prevent costly mistakes. Here are some essential tips:

1. Don’t Set the Trailing Stop Too Close

• If your trailing stop is too tight (e.g., 5 pips on forex or $1 on stocks), small market fluctuations may trigger an early exit, causing you to miss out on potential gains.
• Instead, use a reasonable distance based on the asset’s volatility:
  • Forex major pairs: 20-50 pips.
  • Cryptocurrencies: $50-$500 (depending on volatility).
  • Stocks: $3-$10 (for large-cap stocks).

2. Consider Market Volatility

• In volatile markets like crypto and tech stocks, price swings are frequent. A wider trailing stop allows for natural fluctuations.
• In stable markets like blue-chip stocks or major forex pairs, a tighter trailing stop can be more effective.

3. Use a Trailing Stop with a Take Profit Order

• A trailing stop protects your profits, but it’s also important to set a Take Profit level to secure gains before a potential market reversal.

4. Test in a Demo Account First

• If you’re new to Plus500, practice using a trailing stop loss in a demo account before using it in a live trade.

Advanced Strategies for Using Trailing Stop Loss on Plus500

For more experienced traders, a trailing stop loss can be a game-changer when used with the right strategies.

1. Adjusting the Trailing Stop Manually

• If your trade is moving strongly in your favor, consider increasing the trailing stop distance to capture a larger profit range.
• If market conditions become more stable, you can tighten the trailing stop to protect more profits.

2. Combining Trailing Stops with Technical Indicators

• Use a 50-period Moving Average (MA) as a guide and set your trailing stop slightly below the MA in an uptrend.
• Use support and resistance levels to adjust your stop based on where price tends to reverse.

3. Scaling Out of Positions

• Instead of closing your full trade, partially close your position while keeping the trailing stop active on the remaining portion.
• This allows you to secure profits while staying in the trade for potential bigger gains.

Common Mistakes and How to Avoid Them

Many traders misuse trailing stop losses, leading to frustrating outcomes. Here are some common mistakes and solutions:

• Setting the trailing stop too tight. Solution: Give the market enough room to move by using a reasonable trailing stop distance.
• Not using a trailing stop in volatile markets. Solution: In fast-moving markets like Bitcoin or Tesla, using a trailing stop ensures you capture profits before a big reversal.
• Forgetting to activate the trailing stop. Solution: Always double-check that the trailing stop is enabled before placing a trade.
• Relying only on a trailing stop without a strategy. Solution: Combine a trailing stop loss with technical analysis, such as trend lines and support/resistance levels.

Real-World Insights from Trading Communities

We analyzed user feedback on Reddit, Trustpilot, and ForexFactory to see how traders use trailing stop losses on Plus500. Here’s what they said:

• “I used a 50-pip trailing stop on EUR/USD and locked in my profits before the market reversed. This tool is a lifesaver!” – Forex trader on Reddit.
• “I set my trailing stop too close (10 pips), and I got stopped out before the big price move. Lesson learned!” – CFD trader on Trustpilot.
• “Trailing stops are perfect for long-term crypto trades. I set mine at $500 on Bitcoin, and it saved me from a huge crash.” – Crypto trader on ForexFactory.

Summary

A trailing stop loss on Plus500 is an essential tool for protecting profits and minimizing risk. Whether you’re a beginner or an experienced trader, mastering this feature can help you trade more effectively in volatile markets.

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FAQs

1. Can I use a trailing stop loss on all Plus500 assets?
Yes, you can use trailing stops on forex, stocks, indices, commodities, and crypto CFDs.

2. Can I change my trailing stop after placing a trade?
Yes, you can adjust or remove your trailing stop at any time while your trade is open.

3. What happens if my trailing stop is hit?
Your position will automatically close, securing the profit at the latest stop price.

4. Is a trailing stop better than a fixed stop loss?
A trailing stop is better for capturing profits dynamically, while a fixed stop loss is more predictable.

5. Can I use a trailing stop on Plus500’s mobile app?
Yes, Plus500 supports trailing stop loss on both desktop and mobile platforms.

6. Can I use a trailing stop loss with leverage on Plus500?
Yes, you can use trailing stops while trading with leverage. However:

• Higher leverage = Higher risk of hitting the stop loss.
• If the market moves too quickly, slippage can occur, causing the stop loss to trigger at a different price than expected.

Risk Management Tip:

• Use wider trailing stops when trading with high leverage to avoid premature exits.
• Combine a trailing stop with a take profit level to balance risk and reward.

9. Can I use a trailing stop loss on Plus500’s mobile app?
Yes! The Plus500 mobile app supports trailing stop losses, and the process is the same as on the desktop platform:

1. Open the app and log in.
2. Select the asset you want to trade.
3. Choose Buy or Sell and enter your trade details.
4. Enable Trailing Stop Loss and set the distance.
5. Confirm your trade.

Tip: If you’re trading from your phone, keep an eye on your notifications so you know when your trailing stop executes.