How to Use the Trailing Stop Loss Order (Stop Bid) on Binance

A trailing stop loss order is a powerful risk management tool that allows you to automatically protect your profits and reduce losses with market movements.

How does it work?

When the price of an asset rises, the stop loss level automatically moves in the same direction according to the "trailing" percentage you set.

If the price reverses in the opposite direction, the stop order is triggered, and the sale or purchase is executed according to the type of trade.

How to activate it on Binance:

1. Open the Spot Trading page.

2. Choose the order type -> Stop Bid.

3. Specify:

Reference Price (Market Price or Last Price).

Retracement Percentage (Callback Rate), which is the required drop percentage to move the order (usually between 0.1% and 5%).

Optional Activation Price, where the movement only starts when the price reaches it.

4. Click Confirm, and the system will start automatically moving the stop level according to market movement.

✦ Practical Example:

You bought Bitcoin at $50,000.

You set the retracement percentage at 2%.

If the price rises to $55,000, the stop loss automatically moves to $53,900.

If the price drops 2% from the highest point reached, the order is executed automatically.

✅ Tip: Use this order to protect your profits in an upward trend, while setting an appropriate retracement percentage according to market volatility.

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