A Trailing Stop order is a type of moving stop order that follows the price in the profitable direction. When a percentage (such as 5%) is specified, the stop order will continue to follow the highest price reached by the asset. If the price drops by 5% from the highest point reached, the sell order is automatically triggered to protect profits.
🛠 How to Set Up a Trailing Stop on Binance:
1. Open the Binance app and go to the "Trading" section.
2. Choose the currency pair you wish to trade (e.g., BTC/USDT).
3. Choose the order type "Trailing Stop".
4. Set the activation price (Activation Price), which is the price at which tracking starts.
5. Set the trailing stop percentage (Trailing Delta), such as 5%.
6. Set the limit price (Limit Price), which is the price at which you want to sell after the order is activated.
Example:
If the current price of BTC is 40,000 USDT, you can set:
Activation price: 40,000 USDT
Trailing stop percentage: 5%
Limit price: 41,000 USDT
If the price rises to 45,000 USDT, the stop order will continue to follow the price until it reaches 42,750 USDT. If the price drops by 5% from this point, the sell order is automatically triggered.
⚠️ Important notes:
Trailing Stop orders cannot be modified once created; they must be canceled and a new order created if you wish to modify them.
Ensure that the trailing stop percentage (Trailing Delta) is not too small, as this may cause the order to be activated in regular daily price movements.
Use Trailing Stop Market orders instead of Limit to ensure the order is executed even in case of sharp market fluctuations.
