Looking to lock in profits as the market rises—without setting a fixed selling price? Binance’s Trailing Stop feature is an excellent tool that helps you do just that by automatically tracking the coin’s price increase and selling only when a specific percentage drop occurs.

Understanding the Scenario:

Imagine you’ve purchased a cryptocurrency called ABC at $50, and now the price is climbing. You don’t want to keep checking your screen every minute, nor do you want to sell too early. You also don’t want to miss out on more gains if the price keeps going up. That’s where Trailing Stop comes in handy.

What Is Trailing Stop?

A Trailing Stop is a smart order type that automatically adjusts with market price movements. Instead of selling at a fixed price, it follows the price upwards and only triggers a sell order when the price falls by a certain percentage from its highest point.

This helps you secure profits while allowing room for the price to grow higher.

How to Set Up a Trailing Stop on Binance (App or Website):

Follow these simple steps to activate a Trailing Stop order:

1. Log into your Binance account.

2. Go to the "Trade" section and select the trading pair (e.g., ABC/USDT).

3. Choose the “Sell” option, then switch the order type to “Trailing Stop.”

You’ll now need to enter the following information:

Activation Price (optional): This is the minimum price where the trailing mechanism starts tracking. For example, you can set it at $55, which means the trailing will only begin once the price reaches or goes above $55.

Callback Rate (%): This is the percentage drop from the highest price that will trigger the sell. For example, if you set 6%, the system will sell only when the price falls 6% from its highest point.

Amount: Decide how much of your coin you want to sell. For instance, you may want to sell 80% of your holdings.

Once you’ve filled in these fields, simply tap or click on “Sell ABC” to place the Trailing Stop order.

How Trailing Stop Works in Real-Time:

Let’s say the price of ABC gradually climbs to $60 after your trailing order is activated. The tool continues to track the price as it increases. But if the price then drops by your specified callback rate—6% in this example—the system will automatically place a sell order at $56.40 (which is 6% below $60).

This way, your profits are protected without needing to constantly watch the market. You ride the uptrend, and the tool helps you exit if the market starts to reverse.

Why Use This Feature?

It lets your trades grow with the market without setting a hard exit point.

You don’t need to keep adjusting your sell target manually.

It reduces emotional decisions and protects your gains automatically.

‼️Final Tip:

Trailing Stop is especially useful during volatile markets or when you're expecting prices to rise but don’t want to miss out on securing your earnings. Use it wisely with realistic callback percentages and proper activation prices to maximize your potential returns.