Binance - Coinapult

Efficient and effective risk management is one essential part of successful trading. Although excellent analysis is important to deciding market bias or choosing between buying and selling an asset, risk management provides an extra layer of security for your investment. With effective risk management, traders can adequately secure profits and mitigate losses while protecting their equity. It also helps shield investment against unexpected price movement or volatility. Meanwhile, Stop Loss and Take Profit are integral to managing trading risks. They are limit orders that help you secure profits or mitigate losses while trading. A stop loss closes your order when the loss hits a certain price. Therefore, if the price is unfavorable, a stop loss automatically takes you out of the market without risking your whole equity. In contrast, Take Profit automatically closes your order when you've made profits to a certain level. Setting Stop Loss and Take Profit orders may seem easy. However, it is still important to determine and set them properly to avoid liquidation. In this guide, we'll take a look into the most important limit order in risk management and how to set them in your Binance trading account. Placing Stop Loss and Take Profit at the Same Time in Binance Prices of financial instruments, especially cryptocurrencies, are impossible to predict. In addition, high volatility makes them even more dangerous to trade. Therefore, using an auto Limit order in the form of Stop Loss and Take Profit can reduce the risk on your investment and guarantee you a successful trade. Setting Take Profit and Stop Loss can seem easy. However, the exact position to set Stop Loss or Take Profit on order still requires sound analysis. With technical analysis, traders can determine bias, maximum price rise, and possible change in bias. Typically, choosing both levels can be done by choosing a risk/reward ratio. For instance, for a 1:3 risk/reward ratio, a trader is willing to risk a certain percentage of their asset for a potential triple return. If you want to set take profit and stop loss on Binance, you have to edit the order and input the Stop Loss and Take Profit price levels. However, before you open an order and set your SL and TP price levels, ensure you have enough USDT to open a Futures position. To buy USDT in Binance mobile app, open and log in to your Binance mobile app. Click on BUY CRYPTO from the Binance home screen. Choose USDT as the crypto asset you want to buy. Then enter the amount of USDT you want to buy and tap CONTINUE. Choose your preferred payment method and click on CONFIRM. Finally, supply your payment details and complete 2FA verifications. If you're using a PC device, log in to your Binance account on Binance.com. On the top left corner of the homepage, click on BUY CRYPTO and choose a preferred payment method. In the payment section, choose USDT as the crypto you want to buy and complete the purchase by supplying payment details. Once your Binance account has been funded, ensure you transfer the asset to your Futures account before you start trading. Here's a step-by-step instruction on how to set your SL and TP prices at the same time: For Mobile Binance App users Click on FUTURES from the lower navigation bar in your Binance app. Expand the asset list in your Futures trade account and select the asset pair you want to trade. For instance, BTC/USDT. Choose BUY if you are going long on the asset or SELL if you are shorting the asset. Also, select the preferred order type from Limit, Market, Stop Limit, Stop Market, Trailing Stop, or a TWAP (Time-Weighted Average Price) order. Enter the amount you want to trade. Finally, activate the TP/SL option to set Take Profit and Stop Loss prices. If you are longing for an asset, your Stop Loss price is usually below the entry price, while the Take Profit price is always above the entry price. On the other hand, when you are shorting, the Stop Loss is usually above the entry price while the Take Profit is always below the entry price. To make things easier, you can use the advanced TP/SL option to set your level by percentage loss or gain. With this, you can set the percentage of the equity you are willing to lose in Stop Loss or the percentage of equity you are willing to gain in Take Profit. For PC device users Setting TP and SL on PC is almost the same as that of the mobile Binance app. Once you've funded your account with USDT on Binance.com for web browser, go to DERIVATIVES > USD-M FUTURES to open Binance Futures. In your Binance Futures trading account, choose the preferred trading pair. On the right side of the trading interface, choose your order type and input the amount you want to trade. Finally, tick the trading option for TP/SL to activate it. Input your Take Profit and Stop Loss price and continue to BUY or SELL the pair. Conclusion Successfully trading Cryptocurrency in Future Trading is not a measure of how confident you are. Market prices are unpredictable, and a huge profit can turn into a huge loss in the blink of an eye. However, Stop Loss and Take Profit can mitigate loss from unprecedented asset price changes and reduce risk on your asset. How to Set Multiple Take Profits on Binance? How to Short Dogecoin on Binance? (Step by Step) How To Stake CAKE on Binance?