When you place a “trailing stop” order (for X points), the trading platform does not take any action until the position becomes profitable by X points (the specified trailing stop value). After that, the terminal places Stop Loss at X points from the current price (in this case, at the break-even level). When a quote where the distance between the current price and the Stop Loss level exceeds X points is received, the trading terminal sends an instruction to change the stop order at a distance of X points from the current price. That is, Stop Loss trails after the current price at a distance of X points. Thus, “trailing stop” is a specific algorithm for managing Stop Loss orders.
It’s worth noting that a “trailing stop” is an internal function of the trading platform and works only when your trading terminal is running and connected to our server via the Internet. If you set a “trailing stop” and then turn off the terminal, the server will use the last Stop Loss value.