The Trailing Stop-Loss and HEFFX

NEW YORK, Sept. 13, 2013 /PRNewswire-iReach/ -- HEFFX offer several types of orders that are designed to protect investors from significant losses. The most commonly used order is a stop loss, there is another type of order that should to be considered, it is the trailing stop.

(Photo: http://photos.prnewswire.com/prnh/20130913/MN79394)

Trailing stops are fast becoming a solid tool for active traders.

A trailing stop and a regular stop loss appear similar as they equally provide for the protection of the traders capital should a stock's price begin to move against the trade, but that is where their similarities end.

The trailing stop offers a clear advantage in that it is more flexible in nature than a fixed stop loss. It is an attractive alternative because it allows the trader to continue protecting his capital if the price drops. But, as soon as the price increases, the trailing feature kicks in, allowing for an eventual protection of profit while still reducing the risk to capital.

To better understand a trailing stop, consider that the trailing value is either a fixed percentage of 5% or a fixed spread of 35 cents. Either way, the trailing stop will follow the day's high by the pre-defined amount.

The important part is that once set, it cannot fall back and if the last price drops lower than the trailing-stop value, the stop loss is triggered. 

Sign up at www.heffx.com to learn more.

Heffx is a partnership between Knightsbridge Law and Direct FXTrading.

Knightsbridge Law is a member of the Heffernan Group of Companies.

The Heffernan Group has become one of Asia's leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world.

Foreign Exchange trading involves substantial risk of loss and is not suitable for all investors. READ FULL DISCLOSURE. HEFFX.COM is compensated through the bid/ask spread and/or commissions on transactions.

RISK WARNING: Trading of foreign exchange contracts, contracts for difference, derivatives and other investment products which are leveraged, can carry a high level of risk. These products may not be suitable for all investors. It is possible to lose more than your initial investment. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Opinions, market data, and recommendations are subject to change at any time. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. Please read the PDS and FSG before making any decision to trade Heffx products. The risks must be understood prior to trading.

Media Contact: Shayne Heffernan, Knightsbridge Law Co Ltd, +65 6329 6408, [email protected]

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

SOURCE Heffx