Binance, one of the world’s largest cryptocurrency exchanges, does not currently offer trailing stop loss as a built-in feature. However, that doesn’t mean that you can’t use this important risk management tool when trading on Binance.
In this article, we’ll show you how to set up a trailing stop loss order on Binance using third-party software.
What is a trailing stop loss?
A trailing stop loss is a type of stop loss order that automatically adjusts to the changing price of an asset. For example, let’s say you bought Bitcoin at $10,000 and placed a trailing stop loss at $9,500.
If the price of Bitcoin increases to $11,000, your stop loss will automatically adjust to $10,500. However, if the price of Bitcoin falls back to $10,000 (or below), your stop loss will trigger and sell your position at $9,500.
Why use a trailing stop loss?
There are two main reasons why traders use trailing stop loss orders:
1. To lock in profits on a long position
2. To limit losses on a short position
In the first case, a trader might use a trailing stop loss to take profits as an asset’s price rises. For example, if you bought Bitcoin at $10,000 and it reached $11,000, you could place a trailing stoploss at $10,800.
If the price then fell back to $10,600, your position would be closed and you would have locked in a profit of $200.
In the second case, a trader might use a trailing stop loss to limit their losses on a short position. For example, if you sold Bitcoin at $11,000 with the intention of buying it back at a lower price and it fell to $10,900, you could place a trailing stoploss at $10,700.
If the price then fell further to $10,500 (triggering your stoploss), your position would be closed and you would have lost $200. However, if the price rose back to $11,000 (or above), your position would be closed and you would have made a profit of $300.
How to set up a trailing stop loss on Binance?
Setting up a trailing stoploss on Binance is relatively simple with the help of third-party software like CryptoTrader.io or TradeSanta. Both services allow you to connect your Binance account and trade via their user-friendly interfaces.
They also both offer trailing stop loss as a built-in feature. Here’s how to set up a trailing stoploss on Binance with CryptoTrader.io:.
1) Log in or sign up for an account at CryptoTrader.io
2) Connect your Binance account by following the instructions here
3) Navigate to the “Exchange” tab and select “Binance” from the dropdown menu
4) Find the asset you want to trade in the list of markets and click “Trade”
5) Enter your desired buy or sell order in the “Order Form”
6) Under “Type” select “Trailing Stop Loss”
7) Enter your “Stop Loss Price”
8) Click “Place Order”
Your order will now be placed on Binance and will automatically adjust according to the changing price of the asset (in this case Bitcoin). Remember that you can always view and cancel your open orders by clicking on the “Orders” tab in CryptoTrader.
io or TradeSanta interface. .
To conclude – Does Binance Offer Trailing Stop Loss? No.