What is Stop-Loss and Take-Profit in Margin Trading?

In margin trading on Binance, using stop-loss and take-profit orders is essential for managing risk and securing profits. Here’s how to use them effectively:

1. Stop-Loss: A stop-loss order automatically closes your position at a predetermined price to limit losses if the market moves against you. It’s an essential tool for protecting your capital, especially when using leverage.

2. Take-Profit: A take-profit order allows you to lock in profits once your position hits a specific price target. It ensures you don’t miss out on gains when the market moves in your favor.

Best Practice: Always set both stop-loss and take-profit orders to balance risk and reward, preventing emotional decisions and ensuring that your trades align with your strategy.

Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research and consult with a professional before engaging in any form of trading.