Stop Loss Explanation.
What is Stop Loss?
Stop Loss is a feature that helps limit losses when trading. If the price drops to a certain point, the system will automatically close your position to prevent bigger losses.
How to set Stop Loss on Binance Futures:
1. Open the Binance app.
2. Go to the Futures tab.
3. Under Positions, tap your open position.
4. Tap the TP/SL button.
5. Enter the price where you want your Stop Loss to trigger.
6. Confirm.
Example:
If you buy BTC at $60,000 and set a Stop Loss at $58,000, when the price drops to $58,000, the system will automatically close your position. This way, you avoid losing more if the price continues to fall.
> Why is this important?
Because crypto prices move very fast, and we can't always watch the market. Setting a Stop Loss protects your capital even when you're not checking the app.