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🔹 A trailing stop is a dynamic Stop-Loss that automatically follows the price, maintaining a specified percentage or fixed distance.
🔹 Goal:
- Protect profits when the market reverses.
- Allow the position to grow in case the trend continues.
2. How to set a trailing stop on Binance?
On Binance, the trailing stop is available in three modes:
- Market trailing stop (Trailing Stop Market)
- Trailing stop limit (Trailing Stop Limit)
- Trailing stop through a bot (in Futures)
🔹 Spot trading (Spot)
1. Open the Binance trading interface → "Spot" tab.
2. Select "Stop-Loss" → switch to "Trailing Stop".
3. Fill in the parameters:
- Activation (Callback Rate) – distance in % from the current price.
- Trigger price – the level from which trailing will start.
4. Click "Sell/Buy" to activate.
🔹 Futures
1. Go to Futures → select "Trailing Stop" in order types.
2. Specify:
- Distance (Distance) – in % or $ from the current price.
- Position size.
3. Confirm the order.
3. Examples of use
📈 Example 1: Long position (expecting growth)
- You bought BTC at $60,000.
- Set a Trailing Stop with a 5% offset.
- The price rises to $70,000 → the stop moves along with it:
- If the price drops by 5% from the peak ($66,500), the position will close.
- If BTC continues to rise to $80,000, the stop will rise to $76,000.
📉 Example 2: Short position (expecting a decline)
- You opened a short on ETH at $3,000.
- Set a Trailing Stop with a $200 offset.
- The price drops to $2,500 → the stop follows it.
- If ETH reverses and rises to $2,700, the position will close with a profit.
4. Pros and cons of trailing.
✅ Automation – no need to manually move the stop.
✅ Profit protection – locks in gains during corrections.
✅ Flexibility – works in both Spot and Futures.
❌ Does not protect against gaps – during sharp moves, execution may occur at a worse price.
❌ May close the position too early – if volatility is high.
5. Tips for effective use
🔸 Choose the optimal offset (too small – will trigger on noise, too large – will not protect profits).
🔸 Test on a demo account before real trading.
🔸 Combine with other tools (Take-Profit, volume analysis).
Conclusion
A trailing stop on Binance is a great way to minimize risks and maximize profits in trending movements. Set it according to your strategy and trade more safely! 🚀