What is the Binance Stop limit order? How to set a stop limit order on Binance
The stop limit binance order is one of the three types of trading orders that Binance supports. It is understood as a limit stop order, a combination of limit order and stop order.
This order is executed at a specific price when the market reaches the stop price. This means that when the market reaches a stop price, your order becomes a sell limit or buy limit order at a specific price or better. In the article below, let's learn more about what stop limit binance is? Instructions for placing stop limit orders on binance and experience in placing stops so that it is safe to start participating in reputable virtual currency exchanges.
Learn about stop limit binance
In any financial market, a stop limit is always one of the best ways to preserve your capital. At the same time, this is also a skill that any trader needs to master. The stop-limit binance order helps traders control exactly what buy/sell orders they execute. As a result, the profit and loss can be easily controlled. However, in a volatile market, if you don't know how to use a stop limit order or how to set a stop loss on binance properly, you can lose the opportunity to profit.
Pros and cons of a stop limit order
- Traders are always in a safe zone from market fluctuations. From there, it helps you easily control and manage your trading activities on the floor. Helps maximize profits.
- Stop loss binance, stop limit limit on profit
- No limit on valuation value, can choose any value you want
- Optimizing time, helping users not to have to monitor daily orders on active binance, or in case it is not possible to directly sit on the computer and directly manage transactions.
- Makes players vulnerable and lose more capital if they have to sell at a low price when the market plummets.
- If you set the price too low to account for potential fluctuations, you will suffer significant losses.
When to use a stop limit order?
Stop limit orders (Stop – Limit) have the same value as risk management tools that support users to use to reduce losses during trading. Note that, in case the user wants to place a sell order to take profits when the price targets are reached, this order is very useful. The stop limit order is also commonly used by users when they see that the resistance level of an asset has been broken, starting a new bullish cycle.
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Instructions on how to place a stop limit order on Binance
Step 1. Login to Binance exchange, go to the transaction and select stop limit binance:
Before trading any account, the first thing you need to do is log into the account of that bitcoin exchange. After successfully logging in, you will go to the trading area, there will be 2 tabs to buy (buy) in blue and sell (sell) in red. For stoploss binance is often used on the stop limit sell tab to cut losses more than the buy tab. However, in some cases, it is still possible to set a stop limit on binance on the buy tab when the price breaks the downtrend, gradually turning to the uptrend.
Login to Binance exchange, go to the transaction and select stop limit binance
Step 2. Fill in order information: Next, fill in the required stop limit order information.
For example, you bought BTC at $35800 and accepted a stop loss of $100, which means that you stopped the order at $35700, you would enter the following information:
Stop: 35700 (limit binance order trigger price)
Limit: 35650 (limit order price)
Amount: Amount of BTC you want to stop loss
These 35700 and 35650 prices mean that when the market price touches the level of 8850, then the system will place a limit order at the price of 8800.
Fill in command information
The stop price is greater than the limit for this case, placing a sell order on binance will be executed at the buy tab and vice versa. Stop price is less than limit if want to buy in case of downtrend breakout.
There must be a certain distance between the stop and limit prices, because the market is volatile, your order will not be matched if you place these two prices too close together.
Step 3. Determine order information: After filling in all the information, press the buy or sell stop limit button. At that time, the floor will display the information confirmation again. You just need to press the confirm button and you are done.
Step 4. Place a stop limit binance order: Next is a guide on how to place a stop limit order in the binance app. First, you move to the price area, choose to buy or sell, choose stop limit, fill in the stop and limit price information as shown below.
Place a stop limit binance order
So you have successfully placed an order on binance. With how you can avoid unwanted losses during trading.
Example of using stop limit order on Binance exchange
Let's say, The price at the previous session of BNB was 0.000165 BTC, with resistance at 0.000169 BTC. If you expect the asset price to rise after hitting a resistance level, you can use a stop-limit order to limit your risk and take profits until the price hits the target level without spending much. continuous follow-up time.
To do this, you need to choose a stop - limit order when setting up your trade and set the parameters for this limit order.
As the example above, you can set a stop price of 0.000170BTC and a limit price of 0.000172BTC, with a trading volume (Quantity) of 10. Then click on the button “ Buy BNB” blue to make the request.
To review your request has been fulfilled or not, you can look in the “Query Existing Order” section, in the “Stop – Limit” section with the “Open Orders” tab. If your order is executed or canceled for any reason, you can follow it in the "My 24h Order History" section.
With the information related to the stop limit that we have just shared, hope you have a better understanding of what a stop limit order is and how to place a stop loss order on binance to help you enter the cryptocurrency market easily. easier. If you have any questions, please leave a comment at the end of the article, we will answer as soon as possible. Good luck!
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