Options Scalper (67)

What is a Trailing Stop Loss (TSL) and how does it work on Sahi?

A Trailing Stop Loss (TSL) is a dynamic stop loss that automatically moves in the direction of a profitable trade, locking in gains as the price moves in your favour, while still protecting you if the market reverses.

Unlike a fixed Stop Loss, which stays at one price level, a TSL trails behind the best price achieved since you set it:

  • As the price moves in your favour (up for a long position, down for a short), the TSL moves with it, maintaining a set distance.

  • If the price reverses by the set distance from the peak (for a long) or trough (for a short), the TSL triggers and exits your position.

  • The TSL never moves against you, it only adjusts in the direction of profit.

Example:

You buy a Nifty CE at ₹100 and set a TSL of ₹10. As the price rises to ₹130, your TSL moves up to ₹120 (₹130 − ₹10). If the price then falls to ₹120, your TSL triggers and you exit at approximately ₹120, locking in a ₹20 profit rather than risking a full reversal back to your original SL.

Note: TSL on Sahi functions as a trailing value in points (not percentage) for options in Scalper.