Trailing Stoploss (TSL) was one of the most requested features from our clients, and it is now available for GTT orders on Kite Web.<\/p>\n
A normal stop loss stays fixed at the price you set. That works when you enter a trade, but it can become a problem if the trade moves in your favour.<\/p>\n
Say you buy a stock at \u20b9100 and keep a stop loss at \u20b990. The stock then moves to \u20b9140, but your stop loss is still at \u20b990. If the stock reverses sharply from there, you could give back a large part of the move.<\/p>\n
The obvious solution is to keep moving the stop loss higher as the price rises. But doing this manually means monitoring the position and updating the order repeatedly.<\/p>\n
This is where a trailing stop loss helps.<\/p>\n
A trailing stop loss automatically adjusts the stop-loss trigger as the trade moves in your favour and keeps it unchanged when the price moves against you.<\/p>\n
For a sell GTT, the stop-loss trigger moves up as the price rises. If the price falls, the trigger stays at the last updated level, and for a buy GTT, the stop-loss trigger moves down as the price falls. If the price rises, the trigger stays where it is.<\/p>\n
In both cases, the stop loss only moves in the direction that improves your protection.<\/p>\n