Binance Beginner Series – Day 23 💡 Topic: What Is Stop-Limit Order? ⚙️
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Easy Meaning: A Stop-Limit Order helps you control your buying or selling price when the market moves fast. It’s like setting a “trigger” (Stop) and a “target” (Limit) — so you trade only when the price hits your condition. 📉📈
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Example: Let’s say BTC = $60,000, but you think if it drops to $59,000, it might fall more — so you want to sell before that. You set:
Stop Price: $59,000 (your trigger 🚦)
Limit Price: $58,900 (the minimum price you accept to sell 💰)
When BTC hits $59,000, Binance places your sell order automatically at $58,900. 🔄
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Why It’s Useful: ✅ Protects from big losses ✅ Helps you buy/sell automatically ✅ Perfect for busy traders who can’t watch charts all day 👀
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Pro Tip: Always set a small gap between Stop and Limit prices (e.g. $59,000 & $58,900) to make sure your order executes smoothly! ⚡