Stop Loss !! Best way to take care of unexpected Losses !!
Common Stop Loss Strategies on Binance
1. Basic Stop-Loss Order (Stop-Limit)
How it works: You set a stop price (trigger) and a limit price (the price you sell at).
Example: If ETH is $3,000, you set:
Stop: $2,900
Limit: $2,890
Binance will try to sell your ETH at $2,890 once it hits $2,900.
2. Trailing Stop
Only available in Futures & Spot advanced interfaces.
Adjusts dynamically as the price increases.
You set a trailing percentage — e.g., 5%. If the price drops by 5% from its peak, the sell is triggered.
Good for locking in profits during upward trends.
3. Percent-Based Stop Loss
You decide how much you're willing to lose, e.g., 3–5% below your entry price.
Works well when combined with technical levels like support zones.
4. Volatility-Based Stop
Instead of a fixed % or price, you base your stop on how volatile the asset is.
E.g., if SOL moves $10 in a day, your stop might be set $8–$9 below entry to avoid getting stopped out too early.
5. Support Level Stop
Place the stop just below a known support level or moving average.
More technical, but gives trades more “breathing room.”
