Crypto trading is a rewarding and exciting time-consuming activity. Beginners spend 10-12 hours at the monitor watching the course charts. Working in this style can lead to a nervous breakdown, and even to a heart attack.
Meanwhile, on the Binance exchange, traders have access to trading tools such as Stop Loss and Take Profit. You can use them at the same time and stop worrying about a sudden reversal. It is convenient and necessary to reduce risk and increase the chances of profit .
Do you know how to do it? It doesn’t matter, now we will tell you how to set Stop Loss and Take Profit on Binance. Binance is the largest cryptocurrency exchange in the world, if you are interested in digital assets, but still have not registered on this service, we advise you to do it right now. For users from the CIS, it is important that Bija supports transfers in rubles from Visa / MasterCard bank cards and payment systems QIWI, Advcash, Payeer .
Well, we will return to the topic of the review and first tell you about the features of the trading interface and the available indicators for trading on the Binance.com platform.
Trading interface and indicators
Let’s start getting acquainted with the set of functions of the Binance platform.
The spot trading panel is available in three options:
These tabs are very similar but differ in functionality. The advanced mode allows professional traders to build various figures of technical analysis directly on the rate chart, and in the «Margin» mode, you can trade with leverage. Otherwise, each option is almost identical, the same Japanese candlesticks, order books, orders, and so on.
On the left, under the logo of the exchange, we see the name of the trading pair, the current price, the change over the last day, the minimum and maximum threshold for a given period of time and the total trading volume.
If you work through a browser, then to change a trading pair, you need to hover the mouse cursor over its name and select the desired option in the drop-down menu. It is a little more convenient to do this in the application, since all options are available in the left column.
The pair selection panel is divided into several tabs:
In the first tab, there are pairs made with Binance Coin cryptocurrency, in the next column, pairs with Bitcoin are displayed. The ALTS tab contains pairs with coins ETH, XRP, TRX. In the FIAT section, pairs with stablecoins and national currencies are displayed.
The zone tab displays the pairs supported by additional platform services. To make it easier to search again, it is recommended to mark the required pair by clicking on the asterisk to the right of the name.
The next element is a graph showing the fluctuations in the rate of the selected crypto pair. Customization options are available:
- Depth chart.
It is best to use Traidingview, it shows the direction of the market movement more clearly. But in order to see the overall balance of supply and demand, it is recommended to periodically switch to the depth chart, since only orders close to the current market price are displayed in the order book.
The chart is configured in different time ranges, and Japanese candlesticks allow you to control the rate change during the selected time frame. Candlestick rectangles usually have long or short shadows that show the border of the rate fluctuation. They are colored red or green, depending on the downtrend or uptrend. If the candlestick red, the price fell during the selected interval, if the green price rose.
Below is a chart of the trading volume, and the numbers in the frame help to draw up a chart of the MACD indicator, it is used for technical analysis, it is not necessary to use it when trading on signals. There are 12 analysis tools available in the drop-down menu of technical indicators. You can activate them one by one to look at the chart of rate fluctuations from different angles.
The next element is the order books. All executed, but not yet executed orders are displayed in them in the order of increasing prices. Bids by the seller are highlighted in red, and bids by buyers in green. By focusing on them, you can see the best buy and sell prices at the moment, corresponding to your transaction volume. But if you work on signals, then you don’t need to pay attention to them either.
Below, under the order book, the last executed transactions are displayed, and on the right is the order filling form. It consists of » Buy » and » Sell » buttons, the active button will be colored in the corresponding color. Buy in green and Sell in red. Below them are the tabs for switching the order type (Limit, Market, StopLimit), price, number of coins and the final amount of the transaction.
At the very bottom, the button for confirming the order, it is also always highlighted in color corresponding to the nature of the transaction (buy or sell). The orders you placed, the history of placed orders and completed transactions, as well as the total balance of your deposit are displayed in the field under the rate chart.
Well, now you know everything about the interface of the trading section. It should be added that the web version of the «Margin» section is designed a little differently, where the application form is placed under the course chart.
When trading on signals, first of all pay attention to the chart. Large green candles with a long upward shadow signal a rapid rise in the price, and, accordingly, long red candles with downward shadows clearly indicate a fall in the rate. But the market is often unpredictable and can turn in the opposite direction at any moment. Therefore, it is important to know how Stop Loss and Take Profit are issued on Binance.
Why are Stop Loss Orders needed?
First, let’s tell you what Stop Loss is. If you think that Stop Loss and Stop Limit are the same concept, you are deeply mistaken.
When placing a Stop Limit order, you specify the price, upon reaching which the order will be activated and the execution price, that is, this order is always intended to open a position. Stop-loss, on the contrary, always closes it, its purpose is to minimize losses in case of an unfavorable change in the rate.
How to place a Buy and Sell Stop Loss?
To set Stop Loss, an order option called OCO is used, it is located in the same column as the Stop Limit. His form has 4 fields to fill out:
- Price – the desired order execution price is set here;
- Stop – set the price, upon reaching which the order is canceled;
- Limit – indicate the order execution price if the chart has reached the stop-mark.
If you place a buy order, then in the price field you need to indicate the desired value, which in any case will be lower than the market value.
But if this coin does not fall in price, but, on the contrary, grows in price, in the «Stop» column you need to put the price above the current market value of the asset, upon reaching which your first price will become invalid, and then the order will be executed at the price specified in column «Limit». This price may correspond to the current market price or differ from it, but in any case it should not exceed the price indicated in the «Stop» column.
When placing a sell order, everything is done exactly the opposite. In the upper field, you indicate the desired selling price, of course, as expensive as possible.
But if the rate reverses, then upon reaching the stop mark, a sell order will be activated at the minimum price that is acceptable to you. You can use all or only part of the available capital by adjusting the amount of assets using a percentage scale or by manually entering it in the «Total» field.
Why take profit is needed
Take profit is the extreme close price of a position if events develop as you expected. That is, you sell as expensive as possible or buy as cheaply as possible, fixing the potential profit.
Take profit for buying and selling
You can set Take Profit both in the OCO, in the price column, and in the Limit and Stop Limit orders. Set the best, in your opinion, position closing price and place an order.
Before placing an order, carefully analyze the situation, study the charts on different timeframes and try to predict the development of events.
At the same time, pay attention not only to the pair you have chosen, but also to the general state of the market, especially to changes in the rate of the first cryptocurrency Bitcoin. But keep in mind, the market is sometimes unpredictable and your calculations may be wrong.
Therefore, a beginner needs to invest an amount in crypto trading, the loss of which will not be too painful for him and, only by gaining experience, it is possible to increase working capital. Thank you for reading the review to the end. Profitable trading!