# Activate the stop-loss feature in Binance trading
The stop-loss feature (#stoploss ) is a vital tool in risk management while trading on the Binance cryptocurrency exchange. This feature allows investors to set a specific price at which assets are automatically sold to avoid significant losses. Here's how to activate this feature on Binance:
1. Log in to your account
- Open the Binance app or website and log in to your account.
2. Choose the asset
- Go to the 'Trade' section and select the cryptocurrency you wish to trade.
3. Set up the stop-loss order
- After selecting the asset, click on the 'Stop-Loss Order' (Stop-Limit) or 'Market Stop-Loss Order' (Stop-Market) option based on your preferences.
Limit Stop-Loss Order (Stop-Limit):
- Stop Price: Specify the price at which the sell order is triggered. This price should be lower than the purchase price if you want to sell the asset to avoid losses.
- Execution Price (Limit Price): Specify the price at which you want to sell the asset after the stop order is triggered. This price should be reasonable compared to the stop price.
Market Stop-Loss Order (Stop-Market):
- Stop Price: Works the same way as before, but when activated, the sell order will be executed at the current market price.
4. Specify the quantity
- After entering the stop order details, specify the quantity of the asset you want to sell when the stop order is triggered.
5. Confirm the order
- Review all details carefully then click on 'Sell' to confirm the stop-loss order.
Important Tips
- Carefully set the stop price: The stop price should be close enough to the purchase price to minimize losses, but not so close that it gets triggered by normal market fluctuations.
- Use the trailing stop-loss order (Trailing Stop-Loss): If Binance offers this feature, it can help you automatically adjust the stop price based on market movements in your favor.
By following these steps, you can effectively activate the stop-loss feature in Binance trading, helping you manage risk and maximize your cryptocurrency investment.