Last updated 18 October 2026

How does the trailing stop-loss work in Risk Management?

In short
  • Optional and off by default. Tick Trail the stop-loss as profit rises on the account's risk policy.
  • How it moves: for every ₹X of new profit, the stop-loss moves up by ₹Y. It starts at your max loss and never moves down.
  • Separate actions: the stop-loss and the target can do different things, for example keep trading after a target but stop for the day after a stop-loss.
  • Whole-day P&L only: it needs Measure P&L on set to All positions (booked + open).

When this happens

  1. 1 Wanting the day's loss limit to move up as profit grows, to protect gains.

Where to find it

Open Trading → Risk Mgmt, pick the account, and look at the Loss & profit section of the risk policy:

  • Trail the stop-loss as profit rises: tick it, then fill in the sentence For every ₹1,000 profit, my stop-loss moves up ₹1,000 with your own amounts. The second amount copies the first as you type, because most traders use the same number; change it if you want the stop-loss to move up by less. An example under the sentence shows what your numbers do.
  • When the stop-loss is hit and When the profit target is hit: what happens on each side. If you leave the target on Same as the stop-loss, both do the same thing.

P&L here means the whole day’s profit or loss: trades you closed today plus trades still open.

How the stop-loss moves

The stop-loss starts at your max loss. Each time the day’s profit reaches a new high by another full ₹X, the stop-loss moves up by ₹Y. It never moves back down, even when profit falls.

Example 1: max loss ₹10,000, every ₹1,000 of profit moves the stop-loss up ₹1,000

Day’s highest profit so farStop-loss is now at
₹0−₹10,000 (your max loss)
₹1,000−₹9,000
₹2,600−₹8,000 (only full ₹1,000 steps count)
₹6,000−₹4,000
₹10,000₹0 (break-even)
₹12,000+₹2,000 (₹2,000 profit protected)

So with a ₹10,000 max loss and a ₹1,000 step, the stop-loss reaches break-even only when the day’s profit has climbed by ₹10,000. A smaller max loss or a bigger Y reaches it sooner. Y cannot be bigger than X.

Example 2: profit falls back

The day’s profit reaches ₹5,000, so the stop-loss is at −₹5,000. Profit then falls to −₹4,000: nothing happens, the stop-loss stays at −₹5,000. If it falls to −₹5,000, the stop-loss is hit.

Keep trading after a target, stop after a stop-loss

You can give the two sides different actions. A common setup:

  • When the profit target is hit: Auto square-off everything (keep trading)
  • When the stop-loss is hit: Auto square-off + block new entries

With trailing on, this means: when the target is hit, positions are squared off and you trade on, and the stop-loss stays where trailing has moved it and keeps moving up as profit grows. Only a stop-loss hit stops trading for the day.

Example 3: max loss ₹35,500 and a ₹1,000 step. Profit reaches ₹17,000, so the stop-loss is at −₹18,500. The target squares off and you keep trading. If the next trades push profit to ₹21,000, the stop-loss moves to −₹14,500. If they lose instead, you are stopped at −₹18,500 rather than −₹35,500.

Things to know

  • All positions only. Trailing reads the whole day’s P&L, so it needs Measure P&L on: All positions (booked + open). On Only open positions the screen turns it off.
  • Emails: each square-off sends its own email, showing your target, where the stop-loss is now, and the P&L we compared them against.
  • Live status on the Risk Mgmt screen shows where a trailing stop-loss is now.
  • Daily reset: the trailing stop-loss starts again from your max loss every trading day.
  • Automatic square-off places real exit orders and works only after you agree to the terms. Broker P&L can sometimes be wrong or delayed, so start with alerts only and check the alerts match your broker before turning on automatic actions. See Risk Management.

You choose the stop-loss, the target and the actions. We only provide the tool and act on your settings.

Did this solve your problem?
Contact support