How to Set a Trailing Stop on MT4

A trailing stop is an automated mechanism that moves a stop loss in the direction of profit as the market moves favourably, allowing winners to keep running while protecting accumulated gains. MetaTrader 4 includes a trailing stop feature that can be applied to any open position with a few clicks, but it has one important limitation traders should understand before relying on it.

This article explains what a trailing stop is on MT4, how the mechanic works, how to set one, how it differs from a fixed stop loss, the critical points-versus-pips distinction, and the client-side limitation that affects how it behaves when the terminal is closed.

What Is a Trailing Stop on MT4?

A trailing stop is a stop loss that moves automatically as the market moves in your favour. Unlike a fixed stop loss, which stays where you set it until manually changed, a trailing stop ratchets toward the current price by a defined distance each time the market reaches a new high (for a long position) or a new low (for a short position).

The result is that the stop loss is dragged closer to the market as the trade becomes more profitable, eventually moving past the entry price into profit territory. If the market reverses, the trailing stop closes the trade at the locked-in level rather than retracing all the way back to the original stop loss.

The trailing stop on MT4 is set on a per-position basis, with the trail distance configured by the trader.

How a Trailing Stop Works

On a long position, the trailing stop activates once the market has moved a certain amount into profit, equal to the trail distance you set. At that point, a stop loss is placed at the trail distance below the current price. As the price continues to rise, the trailing stop updates the stop loss to remain the same distance below each new high. When the price retraces by the trail distance, the stop loss is hit and the position is closed.

On a short position, the same mechanic works in reverse. The trailing stop activates once the market has moved into profit by the trail distance, then places a stop loss at the trail distance above the current price. As the price falls further, the stop loss is dragged down to remain the trail distance above each new low. A retracement of the trail distance closes the position.

The trailing stop only moves in the direction of profit. It never widens. Once the stop loss has been moved closer to the market, it stays at that level until either a new favourable high or low extends it further, or the market reverses and closes the position.

How to Set a Trailing Stop on MT4

To set a trailing stop on an open position, open the Terminal window (Ctrl+T) and the Trade tab. Right-click the position you want to apply the trailing stop to, then hover over Trailing Stop in the context menu. A submenu appears with a list of preset distances in points (15, 20, 25, 30, 45, 60, 90, 180) plus None and Custom options.

To use a preset, click the distance you want. The trailing stop is applied immediately and begins watching the market for the activation condition.

To set a custom distance, click Custom. A dialog opens with a Points field. Enter the number of points you want for the trail distance and click OK.

The trailing stop is now active on the position. There is no visible indicator on the chart by default, but you can confirm it is set by checking the position's behaviour and watching the stop loss update as the market moves in your favour.

Points vs Pips on MT4

The Trailing Stop dialog in MT4 asks for the distance in points, not pips. The distinction is critical.

On a 5-digit broker, which is the standard pricing model used by most modern MT4 brokers including TIOmarkets, 1 pip equals 10 points. So entering 50 points produces a 5-pip trail, not a 50-pip trail.

For example, if you want a 50-pip trailing stop on EURUSD priced as 1.09000 (5-digit pricing), enter 500 points in the Custom dialog. A 100-pip trail would require 1,000 points.

On older 4-digit pricing, 1 pip equals 1 point, so 50 points equals 50 pips. This is uncommon today and is not the standard MT4 setup at TIOmarkets.

Checking the symbol's specification (right-click the symbol in Market Watch and select Specification) confirms the number of decimal places used. EURUSD displayed as 1.09000 with five digits after the decimal is 5-digit pricing. Always double-check the number of decimal places before entering a trail distance to avoid an unexpectedly tight or wide trailing stop.

The Client-Side Limitation

The MT4 trailing stop is processed by the MT4 terminal locally rather than by the broker's server. This is the most important practical consideration for the feature.

If MT4 is open and connected to the trading server, the trailing stop functions as described above. As soon as MT4 is closed, the local trailing logic stops. The stop loss does not disappear: whatever level the trailing stop has already moved it to remains active on the broker's server as a fixed stop loss. It simply does not update further until MT4 is reopened.

This means that if you close MT4 with a trailing stop set, your position is still protected by the fixed stop loss at whatever level the trail last reached. However, any further favourable price movement while MT4 is closed will not cause the stop loss to keep moving. Once MT4 is reopened and connected, the trailing stop resumes from where it left off, based on the current state of the position.

The same limitation applies to the MT4 mobile app, which does not run trailing stops at all. Setting a trailing stop on the mobile app is not supported.

For traders who want a trailing stop that updates regardless of whether the terminal is open, MetaTrader 5 offers server-side trailing stop management, so the trail continues to update even when MT5 is closed. This is one of the practical reasons traders who rely heavily on trailing stops may prefer MT5.

How to Modify or Remove a Trailing Stop

To change the trail distance, right-click the position in the Trade tab, hover over Trailing Stop, and choose a different preset or click Custom to enter a new distance. The new trail distance replaces the old one.

To remove the trailing stop entirely, right-click the position, hover over Trailing Stop, and click None. The trailing logic stops immediately. The current stop loss level (whatever the trail last moved it to) remains in place as a fixed stop loss unless you also modify or remove the stop loss separately.

To remove trailing stops from all positions at once, right-click anywhere in the Trade tab (not on a specific position), hover over Trailing Stop, and select Delete All.

Practical Considerations

A few additional things are worth knowing about the MT4 trailing stop.

It is most useful in trending markets where price moves in one direction with limited retracements. In choppy or range-bound markets, normal noise can trigger the trailing stop prematurely, locking in less profit than the trade idea aimed for.

The minimum trail distance is set by the broker through the symbol's stops level, which is the same minimum-distance rule that applies to fixed stop loss and take profit orders. Attempting to set a trail distance smaller than this minimum will cause the trail to be set at the minimum instead.

Execution at the trailing stop is at the best available market price, which may result in positive or negative slippage, in the same way as a fixed stop loss. The slippage rule applies particularly during fast markets or weekend gaps.

Demo accounts often execute instantly and may not fully replicate live slippage conditions, so trailing stop fills on a demo can look cleaner than they will in live trading.

Trading at TIOmarkets

TIOmarkets offers MetaTrader 4 and MetaTrader 5 on desktop, web, and mobile, across four account types. The Standard account is created automatically on registration with a minimum deposit of $20 or currency equivalent. The Raw and VIP Black accounts are opened separately through the client area. The Nano account is MT5 only with a $20 minimum deposit, USD only. Hedging is supported on all accounts. A swap-free Islamic account is available; contact TIOmarkets for eligibility and instrument requirements. Copy trading is available on both MT4 and MT5.

Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions. Spreads are variable and are typically higher than minimum figures shown. Leverage on each instrument is subject to change depending on market conditions and applicable regulatory requirements. You can review the full list of account types on the TIOmarkets accounts page.