📘 Binance Thread for Beginners – Part 9
What is a Stop-Limit order and what is it for?
🧵👇
1️⃣
Yesterday you learned what a limit order is: you choose the price at which you want to buy or sell.
Today we take a step further: the Stop-Limit order, key to protecting your money and trading like the experts.
2️⃣
The Stop-Limit order is activated in two steps:
🔸 STOP → the price that activates your order
🔸 LIMIT → the price at which that order is executed
That is, when the market reaches the STOP price, Binance automatically places your LIMIT order.
3️⃣
📉 Example for SELLING (protecting yourself from a drop):
You bought BTC at $60,000. You want to sell if it drops significantly.
You set:
🔸 Stop: $58,000
🔸 Limit: $57,800
➡️ If BTC drops to $58,000, a sell order is activated at $57,800.
4️⃣
📈 Example for BUYING (confirming a trend):
BTC is at $60,000, but you only want to buy if it rises significantly.
You set:
🔸 Stop: $62,000
🔸 Limit: $62,200
➡️ If the price reaches $62,000, your purchase is activated at $62,200.
5️⃣
This helps you to:
✅ Protect your profits
✅ Avoid large losses
✅ Buy only if an upward trend is confirmed
✅ Not be glued to the screen all day
6️⃣
📍 How do you do it on Binance?
In spot trading:
Change the option to “Stop-Limit” and you will see these fields:
• Stop
• Limit
• Amount
Fill them out and you’re done! It activates only when your condition is met.
7️⃣
🧠 Advice from a friend:
Always place the LIMIT a little below the STOP (if selling) or a little above (if buying).
If you set them equal, the order may not be completed.
8️⃣
With this tool, you no longer trade on luck or hunches. You trade with strategy and control.
That’s how you win in crypto! 💪
9️⃣
Tomorrow we continue with the Stop-Market order, a faster version that many traders use.
Follow me if you want to keep learning about crypto without complications 🔁
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