GTS Trailing Stops

"Trailing Stop" logic allows clients to designate a stop order, on either an already open trade or on an entry order, as "Trailing".

If this option is chosen then the stop order(s) attached to an open trade (including executed entry orders) will trail the market price by client-selected, pre-determined minimum increments. Trailing will only occur when the market price moves in favor of the trade to which the order is attached. Clients can chose to have the stop trail the market by a minimum of ten pips up to a maximum of nine hundred and ninety-nine, either by selecting from the default drop-down menu or enter their own chosen value.

For example: - if ten pips is selected as the "Market Price Move" amount then every time that the market price moves in favor of the open trade, by ten pips or more, the attached stop(s) will be moved by the equivalent value in the same direction. This will occur automatically and will continue to lock in profits or reduce losses without client intervention or monitoring. Should the market suddenly reverse direction, then the last established stop(s) will hold and will not trail the market when the market price is moving against the client's order.

Client Risk Tolerance

Example: A client places a trade and attaches a stop 20 pips away. That client is therefore prepared to risk a loss of 20 pips on the trade should the market move against them. If a client selects “Trailing Stop” then the original risk parameter will be reflected each time the stop is trailed. This means that each time a stop rate is adjusted it will always be set 20 pips away from the market rate at the time it is adjusted or trailed.

Basic Example using a selected "Market Price Move" of ten pips.

• Client places market order to sell EUR/USD at 1.2050. (Market price 1.2050/1.2053)
• Client attaches a stop on this order to buy EUR/USD at 1.2080 (30 pips loss parameter from original trade rate).
• Client designates this stop as “Trailing” and chooses a 10-pip minimum trail-by amount.
• Client submits stop order. (Market price at time of submission 1.2048/1.2051)
• Reference rate for Trailing Stop will be the ask price, 1.2051. (1.2051-10 pips)
• Once the market price moves in the client's favor by ten pips, or more, 1.2051 to 1.2041, then the attached stop will be adjusted by ten pips, 1.2080 to 1.2070.

What happens if market prices change by MORE than client-selected "Market Price Move" amount?

Should the market move by MORE than the selected “Market Price Move” (in this case ten pips) then the trailing stop would be adjusted accordingly. To use the previous example, once the market moves ten pips from the reference rate then the stop will be trailed, therefore at 1.2041, or better, the stop will be moved.

Market Reference Rate for Trailing Stop is 1.2051, first stop price move will occur at 1.2041 if a 10 pip "trail-by" amount is chosen.

• Senario 1: Market moves 1.2051 to 1.2047 – Stop does not change (market only changed 9 pips).
• Senario 2: Market moves 1.2051 to 1.2039 (market moved 12 pips) – Stop will be reset to 1.2068 (1.2080 – 12 pip "market price move" in favor of trade = 1.2068)

New Reference Rate for next stop adjustment will be 1.2029 (10 pips from current market price of 1.2039)

Important New Feature

For the benefit of our clients we have added a column in pending orders with the heading, "TS Move @ In Pips". This displays, in real-time, the next price at which the trailing stop will be reset / trailed and also shows exactly how many pips that "Move Price" is from the current market price. Please be aware that this "Move price" will reflect the market bid or ask price depending on whether the trailing stop is a sell stop or a buy stop. Once the market price reaches, or moves through, this “Move Price”, the trailing stop will be adjusted and the new rate will be displayed in pending orders.

Trailing Stop Reference Rates

Market Order and Hedge Order
If a trailing stop is attached to a "market order" or to a "hedge trade" then the original reference rate for the stop will be the market price at the time that the order is submitted.

Entry Stop / Entry Limit
If a trailing stop is attached to either a "pending" Entry Stop or Entry Limit then the original reference rate for that stop will NOT be the market price but instead will be the actual rate of the Entry Stop/Entry Limit order. If the entry order is executed then this order rate will, in effect, become the market price.