Trailing protective stop takes place when a position is being closed when there is a change in price opposite to an expected trend of price movement. This change is normally in a range of defined percentage (counted off the best price reached after opening of a stock exchange). Trailing stop corresponds to the rule of losses fixing and gives an opportunity for profit growth, thus can be used without any additional position closure rules in place.
Absolute protective stop takes place when a position is being closed with a loss in case there is a change of price opposite to expected trend of price movement. This change is normally a certain percentage counted off a price at the opening of a stock exchange. Absolute stop by all means has to be used simultaneously with other position closure rules in place.
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