To know how Binance works and how to set a stop loss on the same, kindly read this blog now.
What are Cryptocurrencies?
Cryptocurrencies are a viral currency, which is different from traditional savings methods. It is a decentralized technology that helps people save their money without the need to use their name or take help from a bank. Many cryptocurrencies are decentralized networks based on blockchain technology, which means it is devoid of any kind of government interruption. The word “cryptocurrency” is derived from the encryption techniques that are used to secure the network.
Notably, blockchain forms an integral part of how this works. Here are experts who believe that blockchain and related technology will affect various industries.
What Is the Binance Exchange?
Binance Exchange is a major cryptocurrency exchange, which offers trading in more than 45 virtual coins. This is a platform where users trade cryptocurrencies. It has supporting programs that help traders make investment decisions. Binance exchange is a platform that has gained popularity recently due to its low transaction fees and discounts, etc. It is famous amongst cryptocurrency traders. It is licensed and thus, trusted by many people across the globe. It also has a high liquidity rate which is another reason behind its immense popularity. The platform is not only perfect for experienced traders; but also beginners.
How Binance works?
Binance offers its services such as trading, listing, withdrawal of cryptocurrencies, etc. You can even launch your own tokens via Binance. It is a great exchange platform that is authentic. It is largely used by plenty of cryptocurrency enthusiasts around the world.
To start trading, you need to complete the required KYC requirements. Once you have created the account, you will be able to add cryptocurrency funds to public wallet address (which are provided by Binance) and start trading. Binance supports various kinds of cryptocurrencies, such as limit, market, and stop-limit orders. You need to research all of these so that you can trade accordingly.
You should also know that no fees are charged for cryptocurrency or fund deposits.
To support the blockchain ecosystem, Binance also provides platforms and services. You need to research about the same in order to get a clear idea.
How to set a stop loss on Binance?
Notably, you have to understand that cryptocurrency exchanges allow setting only one order with your coin balance. This is the reason why you need to set an alarm to place your stop loss. You should also do the same for profit orders. It would be beneficial to you from various angles.
Your life and making money would be much easier with this trading tool. You won’t need to lock your funds with Exchange Valet. You can set orders in an easy way. With the same balance and market, you can actually set unlimited various orders, which is extremely convenient.
You can stop loss and targets at the same time with the help of the feature. Apart from simplifying the process, this also allows mitigating risk and hiking the chances of profit.
How does it work?
You can use this to automate your trading strategy instead of turning on the computer every time a price is reached. The application connects to the exchange account using your API keys. You wouldn’t be able to click on “withdrawals” in your API settings. Thus your fund is safe. It is secure and allows for convenient transactions.
How to place a stop loss?
In the SELL panel, you will need to create two sell orders. Once the price has been reached, our orders will be placed on the order book.
There is no need to leave the application open. You need to know how orders are placed.
To get notified of when your order has been placed, you need to follow the steps.
Please set pre-set trades with entry, targets, and stop loss.
You need to use SpeedTrade to make set and forget trades. You should set entry, targets, and stop-loss with just a single click. It is quite convenient. You can also check other features on their website.
If you want to trade in a simple, convenient, and safe manner, then Exchange Valet is the best one to rely on. On the Binance Futures platform, you will be able to witness stop order – a combination of stop-loss order and take profit order. The system will itself decide whether it is a stop-loss order or a take profit one based on the price level of trigger price. This is against the mark price when you place the order. You have to understand that Mark price is a trigger for liquidation for Binance. It is also used to quantify unrealized profit and loss.
The mark price has a difference of a few cents from the last price. But yes, the last price might alter a lot from the Mark price during heavy price movements.
This is the reason why you should monitor the price difference between last and mark price. You can, of course, cancel the order you have placed and then replace the same if you want to change the Trigger from Mark Price to the Last Price. It can also be done when you want to change the Trigger from the Last price to Mark price.
Why Should it be Done?
To avoid unnecessary loss on the exchange you are trading on, you should stop-limit orders.
When should you use it?
You should know that stop-limit orders are extremely valuable as risk management tools and you should use it to stay away from huge losses. They are also useful for placing Sell orders. This is done to make sure that you take your profits when your trading targets are reached.
On the other hand, you can set a stop-limit buy order to buy an asset post a particular resistance level is breached.
Once you know how to stop loss on Binance, we hope you would be able to make the most of the platform. All you need is patience and the eagerness to learn about it.