The Mechanics of Stop Losses and Trailing Stops

If during this time, your trailing stop would have moved to 650 - ensuring that even a fast downward movement would not wipe out all your profits

. Even if the market for BP shares crashed overnight, your guaranteed trailing stop would ensure that you profit by 650-595=45 * 10 = 450.

The Mechanics of Stop Losses and Trailing Stops

By: Andy Richardson

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