#stoploss A stop loss is an order placed to automatically sell an asset when it reaches a certain price, with the goal of limiting losses.

For example:

If you buy BTC at $97,000 and set a stop loss at $95,000, your position will be automatically sold if the price drops to $95,000, protecting you from a larger decline.

1. How to set it up (example on Binance):

Step 1: Go to the trading section (Spot or Futures).

Step 2: Select the pair you are trading (for example, BTC/USDT).

Step 3: In the order type, choose "Stop-Limit" or "Stop Market".

Step 4:

Activation Price (Stop): the price at which the order is activated.

Selling Price (Limit): the price at which you want to sell.

Example: Stop: 95,000 / Limit: 94,800

Step 5: Set the amount and click on "Sell".

> In a Stop Market, the sale is executed at the best available price as soon as it is activated.

2. How to choose a good stop loss level:

By percentage: Use a general rule, such as 2-5% below the entry price.

By technical analysis: Place your stop loss below a key support, moving average, or reversal pattern.

By volatility: Use indicators like the ATR to measure the average price movement range.