What are benefits of trailing stop?

Trailing stop is the option that we use to secure our profits and minimize the loss in our trading, whenever we open medium term order then we can use trailing stop to secure our order, you can find this option by right click on your existing order as you can see the picture below:

Here you can see the trailing stop and the options available with trailing stop, actually we set the points or pips to secure our opened order for sudden market bounce back. for example, if you use 15 points, then you will see that when market move more than 15 points in your order favor then you see a red line just after your order, this is actually a stop loss, and if the market will reverse then your order will close on that limit. Sometimes it cause you profits and sometimes it secure your order to go to negative and secure your capital with sudden fluctuation. Now a question arise, if it is stop loss then why not set stop loss manually, what is the need of trailing stop? So, I would like to tell you that when you set 15 or any points of trailing stop then after those pips you will see red line, and if the market continues its movement in your favor then the red line or stop loss will automatically move with the difference of 15 or the points you set. if you set more than 15, like 25 or 35, then you will see that if the market move between 34 points nothing will happen, and after 35 points when the market move one pip, the trail stop will move one pip. you can say it is an emergency break. But it is for medium or long term tradings, not suitable for short or scalping.

What are requotes? and how to prevent it?

Well, requotes are not good thing, when you are watching market and market is in your favor, and you want to open an order according to market trend, but the market is fast, so you will face an error or requotes. it means that the price has been changed and you will have to requote your order with new price, and when you press ok to that price then you see another requote error. So, if you want to save yourself from requotes then open pending order or if you want instant execution of order then click on the small box at the bottom of order window, you can see that in the picture below:

Here you can see the option "Enable maximum deviation from quoted price". click on that button will open the option "Maximum deviation" below. Here you can set how much pips do you want to set. There is 0 to 10 pips in that option, if you want to use it then ideal is 3 pips. It will prevent requotes and when you open an order in running market then it will place your order within 3 pips difference. 

Other thing is pending order. In the "type" dialog box, you can find three options, one is instant execution, second is pending order and third one is modify order. Click on pending order, you will find as below:

Here you can see options for pending order. use your desired option and prevent requotes.

What are pips and spread?

Every new trader has a question what is pip? and what is spread? 

So, I would like to tell those newbies that pips is actually last digit of any currency price, for example, if you see eur/usd pair, and if its price is 1.3022, then the last digit will be called pip, and we use this word pip to evaluate the earnings. 

Now, lets talk about spread, when a trader start trading in meta trader then he see two prices, one is bid price and second is ask price, a trader will see the difference between bid and ask price, for example if the price of Eur/usd is 1.3022 in bid, then the price of ask will be 1.3025. Now, when a trader open an order of 1$ trading volume, then he will see minus 3 (-3) in his status bar, this is the spread that a trader pay to broker when he open an order. and if you want to earn money then you will have to cover that spread first then above that spread will be your profits, if you close that order.

In this picture you can see bid and ask prices, you can also see the currency pairs name. There are some categories of currency pairs, some of them are in major pair group, some of them are in minor, some of them are called crosses. If you see the spread difference then you will find major pairs have low spread, the spread will increase when you trade in minor, and the spread may go up to 350 pips according to currency pairs. Most of the traders prefer to trade with major pairs, because of its volatility, the high fluctuation, the high earning.

This picture has been taken from instaforex broker, and this broker has almost 350 pairs to trade, so I like this broker very much due to hundreds of pairs to trade.