{"id":4491,"date":"2022-05-14T10:00:56","date_gmt":"2022-05-14T03:00:56","guid":{"rendered":"https:\/\/test.wikibinance.com\/?p=1708"},"modified":"2022-12-13T12:04:51","modified_gmt":"2022-12-13T05:04:51","slug":"stop-loss-and-take-profit-orders","status":"publish","type":"post","link":"https:\/\/wikibinance.com\/en\/knowledge\/stop-loss-and-take-profit-orders.html","title":{"rendered":"How to place Stop-Loss and Take-Profit orders on Binance?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><strong>Stop-loss and take-profit orders <\/strong>are the basic concepts that every financial investor have to know. Especially, with the strong development of cryptocurrency market and the advent of many theories and tools to support market analysis, a method of optimizing investors&#8217; trading is essential. This article will give detail information about Stop-loss and Take-profit order and how to place these orders.<\/span><\/p>\n<h2><b>What is a Stop order?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The combination of stop-loss and take-profit orders on <a href=\"http:\/\/ecoinomic.io\/en\/knowledge\/guide\/binance-sign-up-simple-guide.html\" target=\"_blank\" rel=\"noopener\">Binance Futures<\/a> creates a stop order. Based on the price level of trigger price against the last price or the mark price when the order is placed, the system will decide whether the order is SL or TP. It is considered as a free insurance policy for your transactions.<\/span><\/p>\n<figure id=\"attachment_1709\" aria-describedby=\"caption-attachment-1709\" style=\"width: 920px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-1709 size-full\" src=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/10-1.png\" alt=\"The combination of stop-loss (SL) and take-profit (TP) orders on Binance Futures creates a stop order\" width=\"920\" height=\"272\" srcset=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/10-1.png 920w, https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/10-1-300x89.png 300w, https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/10-1-768x227.png 768w, https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/10-1-750x222.png 750w\" sizes=\"(max-width: 920px) 100vw, 920px\" \/><figcaption id=\"caption-attachment-1709\" class=\"wp-caption-text\"><span style=\"font-weight: 400;\">The combination of stop-loss and take-profit orders on Binance Futures creates a stop order<\/span><\/figcaption><\/figure>\n<h2><b>What is entry?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Entry is the initial price of a transaction. If the investor finishes the order correctly at the entry point, the order is considered breakeven.<\/span><\/p>\n<blockquote><p>&gt;&gt;&gt; Related: <a href=\"https:\/\/wikibinance.com\/en\/basic-binance\/binance-sign-up.html\">Guide to sign up for Binance account update 2022<\/a><\/p><\/blockquote>\n<figure id=\"attachment_1710\" aria-describedby=\"caption-attachment-1710\" style=\"width: 401px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-1710 size-full\" src=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/Entry-Take-Profit-and-Stop-Loss.gif\" alt=\"Entry is the initial price of a transaction\" width=\"401\" height=\"247\" \/><figcaption id=\"caption-attachment-1710\" class=\"wp-caption-text\">Entry is the initial price of a transaction<\/figcaption><\/figure>\n<h2><b>What are stop-loss and take-profit orders?<\/b><\/h2>\n<ul>\n<li>\n<h3><b>Stop-loss order<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Stop-loss (SL) order allows the investor to minimize losses by automatically closing a position for expected losses if the price of the asset reaches the predetermined level.<\/span> Placing stop-loss order is based on the following rules<span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">For <\/span><i><span style=\"font-weight: 400;\">Buy<\/span><\/i> <span style=\"font-weight: 400;\">orders: Stop-loss price &lt; Entry price<\/span><\/li>\n<li><span style=\"font-weight: 400;\">For <\/span><i><span style=\"font-weight: 400;\">Sell orders<\/span><\/i><span style=\"font-weight: 400;\">: Stop-loss price &gt; Entry price<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">\u2192 Note, it is not recommended to place a stop loss order too close to the Entry point to avoid highly volatile market.<\/span><\/p>\n<ul>\n<li>\n<h3><b>Take-profit order<\/b><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Take-profit order allows the investor to make profits by automatically closing a position for expected gains if the price of the asset reaches the predetermined level.<\/span> Investors place stop-loss order based on the following rules&#8221;<\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">For <\/span><i><span style=\"font-weight: 400;\">Buy<\/span><\/i> <span style=\"font-weight: 400;\">orders: Take-profit price &gt; Entry price<\/span><\/li>\n<li><span style=\"font-weight: 400;\">For <\/span><i><span style=\"font-weight: 400;\">Sell<\/span><\/i> <span style=\"font-weight: 400;\">orders: Take-profit price &lt; Entry price<\/span><\/li>\n<\/ul>\n<p>In addition to basic orders, Stop loss &#8211; Take profit is an advanced order, like <a href=\"https:\/\/wikibinance.com\/en\/basic-binance\/stop-limit-order.html\">stop-limit orders<\/a> and <a href=\"https:\/\/wikibinance.com\/en\/basic-binance\/oco-order.html\">Binance OCO orders.<\/a><\/p>\n<h2><b>How to place Stop-Loss and Take-Profit orders on Binance<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When placing a Limit or Market order, the investor can simultaneously place a stop- loss and take-profit orders.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Step 1: Go to [Future], tap [Limit] or [Market] order<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Step 2: Enter the price specified entry point and your position size<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Step 3: Tick the box next to [TP\/SL]<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Step 4: Set the price of Take Profit and Stop Loss<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Step 5: Tap [Buy\/Long] to place an order<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_1711\" aria-describedby=\"caption-attachment-1711\" style=\"width: 348px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-1711 size-full\" src=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/z.png\" alt=\"Placing stop-loss and take-profit orders on Binance\" width=\"348\" height=\"661\" srcset=\"https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/z.png 348w, https:\/\/wikibinance.com\/wp-content\/uploads\/2022\/05\/z-158x300.png 158w\" sizes=\"(max-width: 348px) 100vw, 348px\" \/><figcaption id=\"caption-attachment-1711\" class=\"wp-caption-text\">Placing stop-loss and take-profit orders on Binance<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">For example, an investor who bids a Take Profit of $59,000 and a Stop Loss of $58,000 will get the following results:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">If the price ends at the profit-taking point, the investor will profit 59000 &#8211; 58137.36 = 862.64 USDT<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If the price ends at the stop-loss point, the investor will lose 58000 &#8211; 58137.36 = 137.36 USDT<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Note: If the investor is using <\/span><b>hedge mode<\/b><span style=\"font-weight: 400;\">, the profit-taking and stop-loss function is only available with <\/span><b>open orders<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Pros and cons of stop-loss and take-profit orders<\/b><\/h2>\n<h3><b>Advantages<\/b><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\"><em><strong>Saving time:<\/strong><\/em> Once placing stop-loss and take-profit orders<\/span><span style=\"font-weight: 400;\">, the investors do not need to constantly check the trading status.<\/span><\/li>\n<li><b><i>More comfortable in trading: <\/i><\/b><span style=\"font-weight: 400;\">Placing these orders makes the investor reduce<\/span><span style=\"font-weight: 400;\"> the pressure throughout your trading journey. You can gain profit or lose within the acceptable level which is usually about 0.5-1% of the investor&#8217;s assets.<\/span><\/li>\n<li><em><strong>Optimizing profits:<\/strong><\/em><span style=\"font-weight: 400;\"> The investor can place a smaller stop-loss order than the take-profit order from the price at the entry point. After many transactions, take-profit orders can make up for stop-loss order.<\/span><\/li>\n<\/ul>\n<h3><b>Disadvantages<\/b><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">As mentioned above, when the market is highly volatile, the investor will deal with <\/span><b><i>a Stop Loss scan. <\/i><\/b>After that,<span style=\"font-weight: 400;\"> the price returns to the entry point of the order or Take-profit because the investor has placed the stop-loss order too close to the entry point.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Besides, investors will likely <\/span><b><i>lose their good position<\/i><\/b><span style=\"font-weight: 400;\">. Sometimes, the position of the investor when placing orders is good and difficult to return. At this point, the transaction will pass the take-profit point and go even further.<\/span><\/li>\n<\/ul>\n<h2><b>Note<\/b><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The increase or decrease of TP\/SL activate positions can close all investor positions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The TP\/SL of the first matched order will be used to take profits and cut losses for all investor positions. TP\/SL will be automatically canceled when a new order is created.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The investor can see that TP\/SL has not matched in the order being opened.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The TP\/SL function will not be displayed in the investor&#8217;s position and does not support the position closing function.<\/span><\/li>\n<\/ul>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Stop-loss and take-profit orders are important for experienced investors and professional to trade safely, efficiently, save time, preserve funds and lower the stress throughout your trading journey. Investors and traders should take a potential opportunity and build investment strategy to earn profits and mitigate risks.<\/span><\/p>\n\n\n<div class=\"kk-star-ratings kksr-auto kksr-align-center kksr-valign-bottom\"\n    data-payload=\"{&quot;align&quot;:&quot;center&quot;,&quot;id&quot;:&quot;4491&quot;,&quot;slug&quot;:&quot;default&quot;,&quot;valign&quot;:&quot;bottom&quot;,&quot;ignore&quot;:&quot;&quot;,&quot;reference&quot;:&quot;auto&quot;,&quot;class&quot;:&quot;&quot;,&quot;count&quot;:&quot;0&quot;,&quot;readonly&quot;:&quot;&quot;,&quot;score&quot;:&quot;0&quot;,&quot;best&quot;:&quot;5&quot;,&quot;gap&quot;:&quot;5&quot;,&quot;greet&quot;:&quot;Rate this post&quot;,&quot;legend&quot;:&quot;0\\\/5 - (0 votes)&quot;,&quot;size&quot;:&quot;24&quot;,&quot;width&quot;:&quot;0&quot;,&quot;_legend&quot;:&quot;{score}\\\/{best} - ({count} {votes})&quot;,&quot;font_factor&quot;:&quot;1.25&quot;}\">\n    \n<div class=\"kksr-stars\">\n    \n<div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n    \n<div class=\"kksr-stars-active\" style=\"width: 0px;\">\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 5px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 24px; height: 24px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n    \n\n<div class=\"kksr-legend\" style=\"font-size: 19.2px;\">\n            <span class=\"kksr-muted\">Rate this post<\/span>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Stop-loss and take-profit orders are the basic concepts that every financial investor have to know. Especially, with the strong development of cryptocurrency market and the advent of many theories and tools to support market analysis, a method of optimizing investors&#8217; trading is essential. This article will give detail information about Stop-loss and Take-profit order and [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":8097,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[394],"tags":[2403,1920,1922],"_links":{"self":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts\/4491"}],"collection":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/comments?post=4491"}],"version-history":[{"count":7,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts\/4491\/revisions"}],"predecessor-version":[{"id":89325,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/posts\/4491\/revisions\/89325"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/media\/8097"}],"wp:attachment":[{"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/media?parent=4491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/categories?post=4491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wikibinance.com\/en\/wp-json\/wp\/v2\/tags?post=4491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}