Thinkorswim is a powerful trading platform that offers a wide range of tools and features for forex traders. One of these features is the ability to add a trailing stop to your trades. A trailing stop is a type of order that automatically adjusts the stop loss level as the price moves in your favor, allowing you to lock in profits and minimize losses. In this article, we will explain how to add a trailing stop on Thinkorswim forex.
Step 1: Open a Forex Trade
The first step is to open a forex trade on Thinkorswim. You can do this by selecting the currency pair you want to trade from the “Forex Trader” tab on the left-hand side of the platform. Once you have selected the currency pair, you can enter the trade details such as the lot size, stop loss, and take profit levels.
Step 2: Add a Trailing Stop
Once you have opened a forex trade, you can add a trailing stop by right-clicking on the open trade in the “Activity and Positions” tab and selecting “Create Trailing Stop” from the drop-down menu. Alternatively, you can click on the “Create Trailing Stop” button in the “Order Entry” window.
Step 3: Set Trailing Stop Parameters
After you have clicked on the “Create Trailing Stop” button, a new window will appear where you can set the parameters for your trailing stop. You can choose the trailing stop type (percentage or points), the trailing stop value, and the activation level. The activation level is the price level at which the trailing stop will become active. For example, if you set the activation level at 50 pips, the trailing stop will only become active once the price has moved 50 pips in your favor.
Step 4: Confirm and Submit Trailing Stop Order
Once you have set the parameters for your trailing stop, you can confirm and submit the order by clicking on the “Confirm and Send” button. This will open a new window where you can review the order details and make any final adjustments before submitting the order.
Step 5: Monitor and Manage Trailing Stop
After you have submitted the trailing stop order, you can monitor and manage it in the “Activity and Positions” tab. You can see the current trailing stop level, the activation level, and the distance between the current price and the trailing stop level. You can also modify or cancel the trailing stop order at any time by right-clicking on the open trade and selecting “Modify or Cancel Order” from the drop-down menu.
Conclusion
Adding a trailing stop on Thinkorswim forex is a simple and effective way to manage your trades and minimize losses. By automatically adjusting the stop loss level as the price moves in your favor, you can lock in profits and reduce the risk of losing money. With the step-by-step guide outlined in this article, you can easily add a trailing stop to your trades on Thinkorswim and take advantage of this powerful trading tool.
