There is no doubt that stop-losses are really necessary in Forex trading as they help avoid a potential large loss of capital. Traders can use a single 100 pips stop-loss order or more sophisticated techniques, such as trailing stop-losses. A trailing stop-loss is a stop-loss that is moved along with the underlying currency´s price in the same direction. In other words, if the price of the underlying currency moves in an upward direction, the trailing stop-loss will move along with it, but if the price moves in a downward direction, the trailing stop loss will not move.