Forex glossary
Trailing stop
A rule that moves a stop loss as price moves favourably. MT5's local trailing mechanism runs in the terminal; switching it off leaves the last confirmed server stop without further local updates.
Illustrative example
How does it work in practice?
In a hypothetical MT5 example, trailing moves the stop loss to 1.1010 USD per EUR and the server confirms the change. Once the terminal is off, that stop remains but the local mechanism no longer moves it as new quotes arrive.
A case to work through
Price rises after shutdown
MT5 model: last confirmed SL is 1.1005; the terminal shuts down; bid rises to 1.1020 USD/EUR.
- Local trailing cannot calculate another update after shutdown.
- The server retains the last confirmed SL unless it is changed separately.
What follows? Verify terminal or hosting operation and modification history.
Example boundary: Other platforms can use server-side mechanisms; an ordinary SL does not guarantee price.
Local updates in MT5
Text description of the diagram
- Running terminal: Trailing calculates an SL update.
- Server confirmation: Last SL: 1.1005 USD/EUR.
- Terminal off: SL remains; there are no further local updates.
A useful distinction
Trailing stop / Stop loss
In this MT5 setup, stop loss is a server instruction; trailing is its local updating rule.
Check your understanding
Separate a confirmed stop from a future local update.
Show the answer and explanation
It remains, but trailing makes no further updates
This separates the server stop from local updating.
Orders, prices and execution quality
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Read the fuller explanation
Related terms
Sources and documentation
- MetaTrader 5: basic trading principles
Orders, deals and positions; FOK, IOC and partial-filling policies.
Document read: - MetaTrader 5: virtual hosting
Terminal environment, migration and hosting operation without uptime or profit guarantees.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.