#StopLossStrategies

A Binance stop loss order allows you to specify the execution of an automatic cryptocurrency sell order to limit losses in the event of a market drop.

Traders use the Binance stop loss to schedule the purchase or sale of a cryptocurrency when it reaches a specific price. This type of order also takes into account market fluctuations that bring the price of an asset below the specified price.

When the condition defined by the trader is met, a sell order is automatically launched by the platform. However, the price applied for the transaction may be different from the one defined by the user. This is because the price of the asset is constantly changing. It is therefore important to understand this difference from a limit order. The latter executes the transaction only at a limit price or higher.