Binance - Coinapult

Setting a profit target when trading cryptocurrencies help traders build a financial goal. It is also essential to manage risk and securing profit return on a trade. Fortunately for crypto traders, many crypto exchanges have a Take Profit feature that allows them to close an order at a target level and book profits. For instance, you got into a BTC/USDT buy position at $30,000. Meanwhile, according to your technical analysis, the price may go up to $34,000; you can set the Take Profit limit order at $34,000 or take partial profits at different price levels. With Take Profit orders, you don't have to monitor your trades or lose profits gained to high price volatility. Meanwhile, setting Take Profit targets requires you to know what you're doing. It also depends on the type of trader you are, either a Conservative or Aggressive trader. Yet, it directly determines how much profit you will make from a trade. Why Set Multiple Take Profit Targets? One psychological problem most traders battle is struggling to determine the right position to secure their profit and even get out of a trade. Understandably, not many traders will want to close a trade, especially when it is steadily rising in value. Following gambling philosophies like 'never quit while on a winning streak' can be disastrous to a trader's asset. This is because the price of an asset doesn't move in a single direction. It changes randomly with high volatility. Therefore, setting multiple Take Profits is a way of securing your profit at various price levels. Although it reduces potential profit from a trade, multiple Take Profits target ensures your gains are locked. Therefore, once they are locked away from the market, they cannot be lost to price volatility or change in bias. Also, taking profits at different levels reduces risk on your asset since you're closing some orders, thereby limiting the exposure of your asset to market fluctuations and volatility. Steps to Set Multiple Take Profits on Binance Setting multiple Take Profit works almost like Dollar Cost Averaging, where you spread your entry and asset over different price points. However, in Multiple Take Profits, you are spreading your Take Profit limit order over multiple predetermined price points. This is important so that traders can effectively secure profits while the price progresses. Therefore, with this strategy, you automatically lock in your profit by closing partial positions. To set multiple Take Profits on your order: Fund your account Open a BUY/SELL order Click on 'CLOSE POSITION' and Choose Type as 'LIMIT' Enter Multiple Take Profit Price Levels with Amounts 1. Fund your account Open your Binance app and go to your Futures trading account. Ensure you have enough USDT to open an order. You can fund your account with USDT by going to BUY CRYPTO on your home screen. Choose USDT as the crypto you'd like to buy. Input the amount of USDT you'd like to buy and select a preferred payment method. Supply your payment details and complete the purchase by verifying your 2FAs. Once your account has been funded with USDT, transfer them to your Futures Trading account. 2. Open a BUY/SELL order Go back to your Binance Futures trading account and select a trading pair. Select BUY to long the pair or SELL to short the pair. Choose appropriate leverage and input the amount of the pair you'd like to trade in USDT. Finally, tap BUY/LONG or SELL/SHORT to open the trade. 3. Click on 'CLOSE POSITION' and Choose Type as 'LIMIT' After opening the trade, scroll down to POSITIONS in your Future Trading account. Select the position you want to set multiple take profits on. Click on CLOSE POSITION and choose TYPE as LIMIT. As noted earlier, Take Profit is a limit order instructing the exchange to close your order when it reaches a profitable price. Therefore, if you're longing, your limit or take profit price level must be above the entry price. Also, if you're selling or shorting, your Take Profit price levels must be below the entry price. 4. Enter Multiple Take Profit Price Levels with Amounts After choosing LIMIT as the order, enter the price level you want to partially take profit and choose the amount of order you want to close at that price. For instance, you buy 100 USDT of BTC/USDT at $23,500. If you speculated that the price of BTC/USDT may rise to $29,000 and you want to secure profits along the way, you can take: 25% or 25 USDT position at $25,000 BTC/USDT market price Another 25% at $26,000 Another 25% at $27,000 The last 25% at $29,000 Once you input Take Profit price and amount, hit CONFIRM. Set another Take Profit price with the LIMIT order type at another price and specify the amount till you've set a limit order for 100% of the order amount. Conclusion Trading Crypto assets in Futures Trading is extremely risky. For one, not every trader can understand the complexity of the trade. Also, many traders do not have sound analytical skills or strategies to succeed in Futures Trading. Meanwhile, the price of financial instruments, especially cryptocurrencies, is generally unpredictable. Therefore, choosing a working strategy and analytical method can go a long way in improving a trader's winning rate with Futures Trading. Also, sound risk and money management is another essential skill for Futures Traders. Knowing the right price level to set Stop Loss and Take Profit and using leverage efficiently can amplify profit. How To Move Binance Authenticator To New Phone? How To Send BNB From MetaMask To Binance? How to Send BUSD From MetaMask to Binance?