There are many traders who are unaware of how to set a stop loss on Binance. I wanted to share this post with a simplified and detailed explanation:
✅ How to set a stop loss (Stop-Limit) on Binance in easy steps
📌 A simple example:
You bought a coin at a price of 100 dollars, and you want to protect yourself from a large loss if the price drops.
You set a stop loss at 90 dollars, meaning if the price reaches 90, you want the app to automatically sell the coin before the price drops further.
📲 How to set a stop loss on the Binance app or website:
Open the Binance app or log in from your browser.
Go to the trading page (Trade), and choose the pair in which you own the coin (for example: XYZ/USDT).
Choose the "Sell" option.
From the order type (Order Type), select "Stop-Limit".
Now you will see 3 fields to fill:
Stop (the price that activates the sell order): for example, 90.00 dollars.
Limit (the price at which you want to sell): for example, 89.50 dollars (a little less than the Stop to ensure execution).
Amount (the quantity you want to sell): for example, 100% or part of it.
Press the "Sell" button to execute the order.
⚠️ Important notes to understand the difference:
Stop: the price that automatically activates the sell order when reached.
Limit: the price at which you actually want the sale to occur, and is usually slightly lower than Stop to ensure a quick sale.
🛡️ In summary:
If the price of the coin drops and reaches 90 dollars, the system will start selling you the coin at a price close to 89.50 dollars, which protects you from larger losses if the price continues to decline.