Many people are waiting for this article so, No more noise, lets come direct to the point.
How to use stop loss: Let's assume BNB is trading at 500$ and you bought it, and you want to limit your potential loss to $100. Here's how you can set up a stop-loss order:
Open the Binance app or website and log in to your account.
Go to the "Spot" trading section.
Example:
Find any trading pair you bought (e.g., BNB/USDT).
Click on "Trade" and then select "Sell."
In the "Sell" section, choose "Stop-Limit."
Set the "Stop" price at $490. This is $10 less than your purchase price ($500 - $10 = $490).
Next, set the "Limit" price. For example, you can set it at $485.
Enter the amount of BNB you want to sell (ensure it's the amount you bought).
Review the details and click "Sell BNB."
Now, with these settings:
If the BNB price drops to $490, your stop-loss order will be triggered.
Once triggered, your BNB will be sold at the limit price you set ($485).
This way, you limit your potential loss to around $100 ($500 - $485).
Let me share with you an expanded version:
Here's how to use a stop-loss:
Choose a Pair: For example, if you're trading Bitcoin (BTC), you might pair it with USDT (Tether).
Entry Point: Decide when you want to enter the trade and at what price. For instance, you might want to buy BTC when its price is $50,000.
Set a Stop-Loss Price: Determine the price at which you are willing to sell your cryptocurrency to limit your losses. This price should be below your entry price. For example, if you bought BTC at $50,000, you might set a stop-loss at $49,000.
Choose the Order Type: In most exchanges, you can place a stop-loss order as a "Stop-Limit" or "Stop-Market" order.
Stop-Limit: You set a stop price (e.g., $49,000) and a limit price (e.g., $48,900). If the market reaches the stop price, your limit order becomes active to sell your cryptocurrency at the limit price or better. If the market doesn't reach your limit price, your order may not be executed.
Stop-Market: You set a stop price (e.g., $49,000). When the market reaches this price, your cryptocurrency will be sold at the prevailing market price. This type of order guarantees execution but may not guarantee a specific price.
Specify the Amount: Enter the amount of cryptocurrency you want to sell in the stop-loss order. Ensure it matches the amount you bought.
Review and Confirm: Double-check your order details, including the stop price, limit price (for stop-limit orders), and the amount. Confirm the order.
NOTE: HOPE THIS HELPS, EVEN I AM WORKING ON STEP BY STEP GUIDE FOR FUTURE TRADING WITH STOP LOSS, WITH IMAGES ALSO WHERE TO BUY AND WHERE TO SELL.
TILL THEN KEEP FOLLOWING AND KEEP LEARNING.
