Bybit trailing stop loss tutorial

A trailing stop loss on Bybit automatically adjusts to lock in profits as the market moves in your favor, offering dynamic protection compared to a fixed stop loss.

Jul 25, 2025 at 06:29 pm

What Is a Trailing Stop Loss on Bybit?

A trailing stop loss is a dynamic risk management tool used on Bybit to protect profits while allowing a trade room to grow. Unlike a traditional stop loss, which stays at a fixed price, a trailing stop adjusts automatically as the market moves in your favor. This feature is especially useful in volatile cryptocurrency markets where prices can swing rapidly. When the price moves up (for long positions) or down (for short positions), the stop price follows at a set distance. If the market reverses, the stop locks in gains by triggering a market or limit order at the trailing price. This ensures you don’t miss out on locking in profits during sudden reversals.

How to Set Up a Trailing Stop Loss on Bybit

To activate a trailing stop loss on Bybit, follow these steps:

• Navigate to the "Order" tab on the trading interface.
• Select either "Buy" or "Sell" depending on your position type.
• Choose "Trailing Stop" from the order type dropdown menu.
• Input the trailing distance—this is the gap (in USD or percentage) between the current market price and your stop trigger.
• Confirm your order parameters and click "Place Order".
  

  The system will now track the market price and update the stop level automatically. For example, if you set a trailing distance of $50 on a long position and the price rises from $1,000 to $1,200, your stop will move from $950 to $1,150. If the price then drops to $1,150, the order executes.

  Difference Between Trailing Stop and Stop Loss

  
  A standard stop loss remains static once set. If you buy BTC at $30,000 and place a stop at $28,000, it won’t change even if the price climbs to $35,000. A trailing stop, however, adjusts with the trend. If you set a $2,000 trailing distance, and BTC moves to $35,000, your stop shifts to $33,000. This dynamic behavior helps traders avoid premature exits and capture more upside. On Bybit, both types appear in the "Active Orders" section, but only the trailing stop updates its trigger level in real time based on market movement.
  

  How to Adjust or Cancel a Trailing Stop on Bybit

  
  If market conditions change, you may need to modify your trailing stop:
• Go to the "Active Orders" tab.
• Locate your trailing stop order in the list.
• Click the "Edit" button next to the order.
• You can now change the trailing distance or switch to a different order type like a limit or stop-market order.
• To cancel, click "Cancel" instead of "Edit".
  

  This flexibility allows traders to adapt to new information without closing the entire position. Note that edits only affect the stop level—not the original entry or take-profit settings—if those were set separately.

  Best Practices for Using Trailing Stops on Bybit

• Always set a realistic trailing distance. Too tight (e.g., $10 on a $50,000 asset) may trigger false exits due to normal volatility. Too wide (e.g., $5,000) risks giving back too much profit.
• Use percentage-based trailing for assets with high volatility like altcoins—it scales with price changes.
• Combine with a take-profit order to lock in gains at a target while letting the trailing stop manage downside risk.
• Monitor your orders during major news events—Bybit’s trailing stops are not guaranteed during extreme slippage or liquidity crunches.
  

  Bybit supports trailing stops on both Perpetual Contracts and Spot Trading, making it versatile across strategies.

  Common Mistakes When Using Trailing Stops on Bybit

• Setting the trailing distance based on emotion rather than data—always use historical volatility or Average True Range (ATR) as a guide.
• Forgetting that trailing stops are market orders when triggered—this can result in slippage during fast-moving markets.
• Assuming the trailing stop will execute exactly at the set price—Bybit displays the trigger level, but actual fill depends on available liquidity.
• Not testing the feature in a demo account first—Bybit offers a testnet environment where you can simulate trailing stops without risk.
  

  These errors can turn a protective tool into a source of unexpected losses if not managed carefully.

  Frequently Asked Questions

  Q: Can I set a trailing stop loss on Bybit without an open position?
  
  No. Trailing stop orders must be placed in relation to an existing long or short position. You cannot set one as a standalone order like a limit or stop-market entry.

  Q: Does Bybit support trailing stops on all trading pairs?
  
  Yes, trailing stops are available for all USDT Perpetuals, Inverse Perpetuals, and Spot pairs. However, availability may vary slightly during system maintenance or new listing periods.

  Q: What happens if my trailing stop triggers but there’s no liquidity?
  
  In low-liquidity scenarios, your order may fill at a worse price than expected—this is known as slippage. Bybit uses a market order upon trigger, so always check the order book depth before relying on tight trailing distances.

  Q: Can I use a trailing stop and a take-profit order at the same time on Bybit?
  
  Yes. You can set both simultaneously. The first condition met (either take-profit or trailing stop trigger) will execute, and the other will be canceled automatically.