Binance stop loss take profit same time
IntroductionWhen investing in cryptocurrencies, setting up stop-loss and take-profit orders are highly important since its the easiest way to manage your open positions. Indeed, a stop-loss order assists you in determining your risk ratio and the amount you are willing to lose in a single trade, while a take-profit order may be utilized to avoid the natural human tendency of being greedy by locking in profits on short or long-term market movements. In todays article, we will explore what are stop-loss and take-profit orders, as well as how to place a limit order with stop-loss and take-profit features on Binance. Lets get started! Show What are stop-loss and take-profit orders?To limit the maximum loss you may incur on a cryptocurrency position, a stop-loss strategy will help you to do so. Meanwhile, a take-profit strategy establishes a particular price at which you are willing to liquidate an open position in a cryptocurrency for a profit. Using stop-loss and take-profit orders together will help you determine a risk ratio for your investments, in which keeping your potential loss much smaller than your potential gain. What is a stop-loss order?To minimize risks, traders and investors will develop a stop-loss plan to safeguard their money. When the price of an asset falls below the traders stop price, a stop-loss order will be triggered. The market order would be executed, in which it sells below the stop loss level at the next available price. For example, given that you purchased 10 Binance Coins (BNB) at $300 each, which is $3000 in total. You set a stop-loss order at $250. After a few days you open your open position, the price of BNB drops below $250. At that time, your stop-loss order is automatically triggered and closes your position at $249.95 for a loss of $50.05 per BNB. What is a take-profit order?A take-profit order ensures that a position is closed at or above a chosen price point. A position on a cryptocurrency is closed for a profit if the price moves in the proper direction to the take-profit level. Take-profit orders are commonly used among short-term traders since it is the most effective way to complete a transaction and remove the human factor from managing an open position. With the combination of stop-loss and take-profit features, you can be able to adjust the risk-to-reward ratio of each transaction. How to utilize stop-loss strategies?To handle your open positions like an expert, youll need to understand what take-profit and stop-loss trading are. By using a stop-loss, you dont have to worry about micro-managing your portfolio. You may choose the magnitude of the stop-loss, place the order, and sit until the order is triggered. Everything has its pros and cons, and so do stop-loss orders. In a highly volatile market, your stop loss can be triggered following a highly volatile short-term rise in the market, only to see the value rebound or move into profitable levels over the medium to long term. Therefore, there are specific trading situations that you can utilize stop-loss orders in an effective way, involving:
How to utilize take-profit strategies?With take-profit orders, you may use a variety of techniques. Well go through a few of the most common strategies employed by experienced traders, including:
How to place a limit order with TP/SL on Binance?When you want to place a limit order on Binance, you are allowed to set the take profit and stop-loss orders at the same time. Enter the order price and size by clicking [Limit]. Then, select [Last Price] or [Mark Price] to specify the [Take Profit] and [Stop Loss] prices. Then, to make the order, select [Buy/Long] or [Sell/Short]. If you are using the hedge mode, the TP/SL function is only available for open orders. You can check the orders placed under the [Open Orders] tab: To view order details, click [View] under [TP/SL] column. When there is an order triggered, you can add or adjust the TP/SL under [Positions] tab, applied for the entire position. After the position is closed, the TP/SL will be automatically canceled. Tags: Technical Analysis 101 |