How To Set A Stop Loss On Binance?

In this guide, we will break down how to set a stop loss order on Binance.

First off, we have to understand what a Stop Loss is.

What is a stop loss?

A stop loss, also known as a stop order, is an order to buy or sell a cryptocurrency once the price of the cryptocurrency has risen/fallen to a specified price. The basic purpose of this type of order is to limit an investor’s loss on a position in a cryptocurrency. A stop-loss order can be thought of as one specifying a future price rather than a fundamental valuation. The stop order is typically used when the trader wishes to limit their loss or protect an existing profit on a cryptocurrency position.

How do I set a stop loss on Binance?

To start off you want to head over to the asset you want to trade and put a stop order for.

In this case we will use the BTC/USDT trading pair.

At the bottom of the page you will see the buy and sell options. You will also see three tabs: limit, market and stop-limit.

Click on the stop-limit button. You will see the following page.

binance stop order

From here you have 3 boxes to fill in to complete you order.

The Stop box is the price at which you want the stop loss order to execute. Let’s say for example when the price reaches $35000, the order will execute at $34900, instantly selling our Bitcoin position and putting us in cash.

You would fill out the boxes in the following way:

bitcoin stop loss order

Now once you set the order, it will wait until the price reaches the Stop amount, in this case $35000 before executing an immediate sell at $34900.

To see your existing orders you can click on the open orders section at the bottom of the page.

stop loss open orders

What are some things to be careful with a Stop loss order?

  • Make sure you are using the Sell option if you want to use a stop loss
  • A Stop-limit order can also be used in reverse, so you can buy a crypto when it reaches above a certain price
  • In times of high volatility, prices can pass your limit order instantly, this can happen when a huge seller market sells. If you are worried about this, set a bigger gap between your limit order and stop price. For example use $35000 as the stop price and then $33000 as your limit price.

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