What is Trailing Stop Loss CFDs Order in CFDs?

A trailing stop loss is a stop loss levels that keeps adjusting itself automatically by a set number of pips once the cfd market moves in direction of the trader's open trade by a number of pips.

For examples the trailing stop can be set at 30 pips and set to adjust itself to 30 pips automatically once the cfd moves up by 5 or 10 pips. This means that this trailing stop loss cfd order will keep trailing the cfds price as long as the cfds price keeps heading in direction of the trader's open position.

This trailing stop-loss will close the order once the cfd market starts to retrace & it retraces to the level of the most recent set trailing stop loss level.

A good indicator used to set trailing stop-loss levels is the Parabolic SAR technical indicator:

Parabolic SAR Technical Indicator

Parabolic SAR is used by cfds traders to set trailing cfds price stop-loss areas

Parabolic SAR provides good exit points which keep trailing the cfds price on a cfds chart.

In an upwards cfd trend, you should close long trade positions when the cfds price drops below the parabolic SAR

In a downwards cfd trend, you should close short trade positions when the cfds price rises above the parabolic SAR.

If you are trading long then the cfds price is above the parabolic SAR, the parabolic SAR will move up every day, regardless of the direction in which the cfds price is moving. Amount the parabolic SAR moves up depends on amount that cfd prices moves. Once cfds price moves below the parabolic SAR as illustrated and shown on cfd example shown below, then traders should close their open buy cfds trades at trailing stop level provided by the Parabolic SAR +technical indicator.

Parabolic SAR - CFDs Technical Indicator used to set Trailing Stop Loss CFD Order Levels