Trailing Stop: Your Secret Weapon to Protect Profits Without Market Monitoring!
What is a Trailing Stop?
A Trailing Stop is a smart trading tool that helps you secure your profits and automatically reduce losses. This order works by adjusting the stop loss to move with the price movement in your desired direction, but it does not move backward.
In other words, if the price is rising, the stop loss rises with it, and if the price starts to fall, the stop loss remains at the last point it reached and does not move downwards.
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Why do traders use Trailing Stop?
✅ Securing profits: It helps you lock in profits automatically without the need for continuous monitoring.
✅ Reducing losses: Once the market reverses, the stop loss is activated to protect you from significant losses.
✅ Smart trading: It allows you to benefit from upward trends without exiting too early.
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How does Trailing Stop work on Binance?
When activated, you need to specify:
1. Activation Price:
• The price at which the trailing stop begins to work.
• For example, if the price of Bitcoin is $60,000, you can set $61,000 as the activation price, so the trailing does not start until the price reaches it.
2. Callback Rate:
• This is the percentage by which the stop loss trails behind the price.
• For example, if you choose 2%, it means the stop loss will remain 2% below the highest price reached.
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