Server-side and client-side trailing stops

[Shadow Trader]

A trailing stop follows price as a position moves in profit. Where it runs matters a great deal.

Client-side trailing stops are managed by the platform on the trader's computer or VPS. Each time price moves, the software sends a modification request to the broker, moving the stop. If the platform closes, freezes or loses connection, the stop stays where it was last placed. Trailing simply stops.

Server-side trailing stops, offered by some brokers and platforms, live on the broker's system and adjust automatically regardless of the client's connection.

The difference shows up in the worst moments. A client-side trail on a laptop that goes to sleep is no trail at all. A fast spike can also outrun the modification requests, leaving the stop behind.

Checking which type the platform uses is easy: close the platform and see whether the stop keeps moving. If it doesn't, the protection is only as good as the connection.

A quick test makes the difference visible. Open a small position on demo, set the trailing stop, then close the platform completely and watch the stop level in the broker's web terminal or phone app. If it keeps following price, the trail is server-side. If it freezes where it was, it's client-side.

Many traders only discover the difference after a connection drop. A short test costs nothing and could prevent a surprise during a fast market.

Does the trailing stop in use run on the server or the client, and has a disconnect ever exposed the difference?