🧵 Thread 12| What is a stop-market order on Binance and what is it for? 🚨 #Binance #CryptoForBeginners #StopMarket #SafeTrading
Do you already know what a market order is? Perfect. Now it's time to understand the stop-market order, an essential tool for protecting your investment. Let's go 👇
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🔹 A market order is executed instantly at the best available price when you place it.
You use it to buy or sell quickly, regardless of the exact price. #MarketOrder #MyCOSTrade CryptoTrading
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⚠️ In contrast, a stop-market order only activates when the price reaches a level you decide: the stop price.
When activated, it becomes a market order that is executed at the best available price. #StopLoss #RiskManagement
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📌 What is it for?
— To automatically stop losses (stop-loss)
— To secure profits before the market changes direction #Trading #SmartInvestment
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📲 Practical example:
You have BTC at $70,000 and want to sell if it drops to $68,000 to avoid further losses.
You place a stop-market order with a stop price at $68,000. #BTC #Cryptocurrencies
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⚡ If the price hits $68,000, Binance automatically launches a market order to sell quickly.
This way, you avoid having to monitor the market constantly and protect your money. #TradingTips #CryptoSecurity
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✅ Advantages:
— Automatic, you don’t have to be attentive
— Executes quickly once activated
— Ideal for managing risks #Investments #CryptoTips
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❗ But beware: in very volatile markets, the final price may be different from the stop because it executes as a market order.
#Volatility #Markets #Binance #CryptoForBeginners #StopMarket #SafeTrading #MarketOrder #CryptoTrading #StopLoss #RiskManagement #Trading #SmartInvestment #BTC #Cryptocurrencies #TradingTips #CryptoSecurity #Investments #CryptoTips #Volatility #Markets