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To help prevent liquidations, it's crucial to plan ahead and manage your risks. Binance Margin offers Take-Profit and Stop-Loss orders to assist users in planning and taking proactive measures.
What is Take-Profit and Stop-Loss?
A Take-Profit order will lock in profits when the price reaches the target, whereas a Stop-Loss order serves to take a loss and protect users against further downside. Depending on your trading strategy, you can choose to set limit-makers as Take-Profit orders and stop limit as Stop-Loss orders.
Binance Margin offers Take-Profit and Stop-Loss settings based on position level, following the trading logic under OCO (One Cancels the Other) order with Auto Repay Mode. The OCO order logic ensures that when your Take-Profit or Stop-Loss (TP/SL) order is triggered, the other one will be canceled immediately. And when the TP/SL order is triggered and filled, the filled amount will be used to repay any remaining debt and interest first. After the repayment, the remaining assets will stay in your isolated margin wallet for further use.
For more details of OCO order, please refer to this FAQ - What Is an OCO (One-Cancels-the-Other) Order and How to Use It.
How to Set the Take-Profit or Stop-Loss (TP/SL) Parameters?
For Long Positions:
If you are holding a long position, you can set a Take-Profit order price above the market price where you wish to close the trade and take the profit.
Alternatively, set a Stop-Loss order price below the market price where you wish to close the trade when the loss is within your tolerance, thereby preventing further losses.
For Short Positions:
If you are holding a short position, you can set a Take-Profit order price below the market price where you wish to close the trade and take the profit.
Alternatively, set a Stop-Loss order price above the market price where you wish to close the trade when the loss is within your tolerance, thereby preventing further losses .
Where to Set the Position TP/SL?
1. Log in to your Binance account and go to [Margin] - [isolated]. Switch to the [Position] tab.
2. Choose the isolated margin trading pair you want to set, click the [Add] button under the TP/SL column.
3. Enter the Take-Profit and/or Stop-Loss price and the order amount, below will show the estimated repaying amount after the TP/SL order is filled.
4. Check the order details carefully and click [Confirm]. The system will automatically execute your orders based on your set parameters.
How to define the TP/SL Order Direction (Buy/Sell)?
The TP/SL order direction depends on the Base token position value (equity value).
| Base Position | Take-Profit Order Direction (Buy/ Sell) | Stop-Loss Order Direction (Buy/ Sell) |
| Position Value > 0 | Sell | Buy |
| Position Value ≤ 0 | Buy | Sell |
Can I view or cancel the unfulfilled TP/SL under [Open Orders]?
After the TP/SL is set, you can click the icon to view or cancel the unfulfilled TP/SL orders.
Frequently Asked Questions
1. What will happen to my debt after the TP/SL trigger?
When the TP/SL order is triggered and filled, the filled amount will be used to repay any remaining debt and interest first. After repayment, the remaining assets will stay in your isolated margin wallet.
2. What are some scenarios where the TP/SL orders will be canceled?
- If the user manually clicks to cancel the TP/SL order.
- If the user clicks the [Close Position] button manually before the TP/SL order is filled, the TP/SL will be automatically canceled.
- If the isolated trading pairs are about to delist, the TP/SL will be automatically canceled.
3. Is TP/SL guaranteed to be filled? Or are they guaranteed to be filled if they are triggered?
No, similar to all other normal margin limit or stop limit orders, if the market moves too quickly, there might not be enough time to fill the orders, especially when the stop price and the limit price are very close. Even if you have set up TP/SL orders, we still encourage you to monitor the order status and market conditions for your own responsibility.