mycostrade

This is a general announcement and marketing communication. Products and services referred to here may not be available in your region.
Fellow Binancians,
Binance Square is pleased to introduce Trade With COS Terminal, a Trade Sharing Challenge in partnership with Contentos, where users who share their COS trades via COS Terminal can earn rewards. Eligible participants can get a chance to unlock a share of $10,000 in COS token voucher rewards!
Activity Period: 2025-06-02 05:00 (UTC) to 2025-06-12 23:59 (UTC)
How to Participate
All verified Binance users who complete the following steps can potentially unlock a share of the $10,000 COS reward pool:
Step 1: Trade COS on Binance Spot.
Each COS trade* has to be a minimum of $20 equivalent to be qualified for rewards. Each user can make multiple trades (min. $20 each trade) to qualify for more rewards. Please refer to the Rewards Allocation section for more information.
Step 2: Share your COS trade via COS Terminal on Binance Square.
Refer to this step-by-step tutorial for more details. For your post to be eligible, it must fulfill these criteria:Include a caption explaining your trade set-up (min. 100 characters);Include the campaign hashtag #MyCOSTrade.
Step 3: To qualify for the Bonus Prize Pool, share your COS trade performance on X!
To unlock bonus rewards, complete the following steps:Share a screenshot of your trade performance on X;Include the link to your Binance Square post; Submit the link to your X post via this survey. You can submit up to 3 posts in total.Each post must feature a unique screenshot corresponding to a unique trade. Multiple tweets using the screenshot of the same trade will only count as one entry.
Note: *Each trade can only qualify for rewards once. To qualify for more rewards, you may execute multiple COS trades and share each unique trade via COS Terminal (Step 2), and share a unique screenshot on X (Step 3).
Rewards Allocation
CategoryReward Pool(in COS Token Voucher)Who Can QualifyReward CalculationBest Entry$500 Users who complete Steps 1 and 2 successfully and rank among the top 20 lowest COS buy prices amongst all eligible participants$25 in COS Token Voucher per userHighest Exit$500 Users who complete Steps 1 and 2 successfully and rank among the top 20 highest COS sell price amongst all eligible participants$25 in COS Token Voucher per userMain Prize Pool$6,000 (Capped at $5 in COS Token Voucher per user)Users who complete Steps 1 and 2 successfullyReward = (Your Eligible Posts/Total Eligible Posts by All Participants) * $6,000 COS Token Voucher Bonus Prize Pool$3,000 (Capped at $10 in COS Token Voucher per user)Users who complete Steps 1 to 3 successfullyReward = (Your Eligible Posts/Total Eligible X Posts by All Participants) * $3,000 COS Token VoucherTotal Prize Pool$10,000 in COS Token Vouchers
Maximize your rewards by trading and sharing more! The more eligible trades you make and the more posts you publish, the more rewards you can earn.
Example: You share 10 eligible COS trades on Terminal, and share a screenshot of your trade performance on X for one of those trades. One of your trades also won the highest COS sell price. The total rewards earned will be:
(10 / Total Eligible Posts by All Participants) * $6,000 COS Token Voucher + (1 / Total Eligible X Posts by All Participants) * $3,000 COS Token Voucher + $25 COS Token VoucherThe total rewards allocated to you will be capped at $40 in COS token vouchers.
Terms and Conditions
This activity may not be available in your region.Content must be original with no rewriting of existing content. AI assistance is allowed, but the content must not be AI-generated. Content pieces that are deleted during the Activity Period or duplicated will not qualify. The content must be original and exclusively created for these promotions. Old content creations and content submissions in previous Binance competitions or activities are not eligible for these promotions.Content must not claim to be financial or expert advice.Only new, original content posted during the Activity Period and submitted via the survey is eligible.You can submit up to 3 posts per submission and multiple surveys. Only the latest survey submission will be considered. Binance Square team reserves the right to disqualify posts that abuse or misuse hashtags, including misleading tagging or irrelevant content. The Binance Square team will review and give final approval on all submissions, evaluating them based on adherence to the campaign guidelines.Each eligible participant that did not win Best Entry or Highest Exit may receive a maximum of $5 from the $6,000 COS token voucher prize pool and $10 from the $3,000 COS token voucher bonus pool. Each eligible participant that wins Best Entry or Highest Exit may receive $25 from each category.Rewards will be distributed in the form of COS token vouchers to eligible users within 21 working days after the activity ends and will expire 14 days after distribution. Users will be able to log in and redeem their voucher rewards via Profile > Rewards Hub. Illegally bulk registered accounts or sub-accounts shall not be eligible to participate or receive any rewards.Binance reserves the right to cancel a user’s eligibility if the account breaches Binance Square Community Management Guidelines or Binance Square Community Platform Terms and Conditions.Binance reserves the right at any time to determine and/or amend these terms and conditions without prior notice, including but not limited to canceling, extending, terminating, or suspending this activity, or amending the eligibility criteria, selection process, and reward distribution.Binance reserves the right to disqualify any participants who tamper with Binance program code, or interfere with the operation of Binance program code with other software.Binance reserves the right of final interpretation of this activity.There may be discrepancies between this original content in English and any translated versions. Please refer to the original English version for the most accurate information, in case any discrepancies arise.
Thank you for your support!
Binance Team
2025-06-02
Trade on-the-go with Binance’s crypto trading app (iOS/Android)
Find us on
TelegramXFacebookInstagram
Binance reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reasons without prior notice.
Disclaimer: Content on Binance Square platform may include information, views and opinions posted by third parties. Such content is presented to viewers on an “as is” basis for general information purposes only, without representation or warranty of any kind. Opinions expressed in these content also belong to the relevant third party posters. They do not purport to reflect the views of Binance. Correspondingly, please note that availability of such content on Binance Square platform, is not intended to be and shall not be construed as an endorsement by Binance of such views or, about the reliability or accuracy of such content. Furthermore, the content and the platform’s availability is not guaranteed.
Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. The content on this platform shall not be construed as financial advice.
For more information, see Binance Square Community Platform Terms and Conditions.

#MyCOSTrade #CEXvsDEX101 #TradingTypes101 #DGENLiveOnAlpha #PCEMarketWatch
$XRP $BNB $BTC
Smart trading is not just about chasing profits. It is about managing risk with discipline and consistency. Every trade involves some level of uncertainty, and even a promising setup can lead to a loss. That is why having a simple, reliable risk management rule can help traders stay in the game longer.

The 3-5-7 rule gives traders a structured way to control how much they risk on each trade, how much they expose across their entire portfolio, and how much they aim to make when trades go right. This rule is easy to follow, especially for beginners, and it can be adapted over time as a trader’s experience grows.

In this guide, we will explain how the 3-5-7 rule works, why it matters, and how to use it in real-world trading. You will also learn how to apply it using a free demo account, and how it fits into your overall trading strategy.

Key Takeaways

The 3-5-7 rule is a simple trading risk management strategy. It limits how much you risk per trade (3%), how much you expose across all open trades (5%), and sets a clear target for profit on winners (7%).

Risking no more than 3% per trade protects your capital. This cap ensures a single loss won’t damage your account and helps you trade more objectively.

Limiting total exposure to 5% keeps your portfolio balanced. It prevents overcommitment to any single market or trade idea, reducing the impact of correlated losses.

Targeting at least 7% profit improves your risk-reward ratio. By making your winners larger than your losers, you don’t have to win every trade to grow your account over time.

What Is the 3-5-7 Rule in Trading?

The 3-5-7 rule is a straightforward risk management framework that helps traders limit losses, manage exposure, and focus on high-quality trade setups. It’s designed to bring structure and discipline to the decision-making process, especially in volatile or fast-moving markets like futures.

At its core, the 3-5-7 rule sets three clear boundaries:

3%: The maximum amount of your trading capital you should risk on any single trade.

5%: The total amount of capital you should have exposed across all open trades at any given time.

7%: The minimum profit you should aim to make on your winning trades.

Each number serves a purpose. The 3% rule limits the damage from any single bad trade. The 5% rule protects your portfolio from being too concentrated or overleveraged. The 7% rule keeps your focus on trades with strong potential, helping your winners do more work than your losers.

Unlike complex trading systems or technical models, the 3-5-7 rule does not require advanced math, indicators, or software. It can be applied manually, with a calculator or spreadsheet, or with built-in tools on your trading platform. And because it’s rooted in percentages, it scales easily with your account size, whether you’re trading with $1,000 or $100,000.

Many traders use the 3-5-7 rule as a foundation for more advanced strategies. Others use it as a core system for managing trades across futures, stocks, forex, or crypto. It’s especially helpful for newer traders who are still developing consistency and learning how to protect their capital.

Why the 3-5-7 Rule Matters

Risk is unavoidable in trading. Every trade carries the possibility of loss, no matter how strong the setup looks. What separates successful traders from inconsistent ones isn’t just their ability to find winners, it’s their ability to control risk, protect capital, and maintain discipline over time. That’s where the 3-5-7 rule makes a difference.

This rule matters because it forces structure into your trading. Without a clear framework, it’s easy to fall into emotional patterns: chasing losses, doubling down on bad trades, or overexposing your account when a setup looks “too good to miss.” These behaviors are common, and they often lead to steep drawdowns or account blow-ups.

The 3-5-7 rule helps reduce these risks by setting simple, enforceable limits on:

How much you can lose on a single trade (3%)

How much you can have exposed at once (5%)

How much you aim to gain when a trade goes your way (7%)

This creates a built-in balance between caution and reward. You’re limiting downside while giving yourself room to grow. And because the math is clear from the start, you can plan every trade around defined numbers rather than gut feeling.

Traders often underestimate how much psychology plays into performance. When you know your losses are capped, you’re more likely to stay calm, follow your strategy, and avoid reactive decisions. When you aim for solid profit targets, you avoid settling for small gains that barely move your account forward.

Over time, this kind of consistency compounds. A trader who follows the 3-5-7 rule may not win every trade, but they protect themselves from big setbacks and give their winners enough room to make up for the losers.

In short, the 3-5-7 rule isn’t just about managing numbers. It’s about creating a repeatable system that keeps you focused, rational, and in control, even when markets are unpredictable.

The ‘3’: Risk No More Than 3% Per Trade

The first part of the rule is about how much you can afford to lose on a single trade. The 3% limit means that if the trade goes against you, it should only cost you a small portion of your account.

Why 3%?

It protects your capital from large hits.

It keeps you in the game even after a losing streak.

It forces you to think carefully about stop-loss placement and trade size.

How to Calculate 3% Risk Per Trade

Let’s say you have a $10,000 account.

3% of $10,000 is $300

This means your maximum loss on any one trade should not exceed $300

To calculate position size based on this rule, use this formula:

Position size = Maximum risk ÷ Stop-loss distance

If your stop-loss is 10 points, and you want to risk $300, you would trade 30 contracts if each point is worth $1. Always match your size to your stop-loss and risk tolerance.

The ‘5’: Limit Total Market Exposure to 5%

The second part of the rule controls how much total capital you have exposed at once. Even if each trade follows the 3% rule, having too many trades open can still put your portfolio at risk.

What Does 5% Exposure Mean?

It means you should not have more than 5% of your capital actively at risk across all trades. That includes correlated positions. If one market falls, others may follow, increasing your total loss.

Example:

With a $50,000 account, the most you should have exposed across all trades is $2,500.

This rule encourages diversification and prevents overloading your account with similar trades. It can also stop you from chasing too many opportunities at once.

The ‘7’: Target at Least 7% Profit on Winning Trades

The final part of the rule shifts the focus to profit targets. While it is important to protect capital, it is just as important to make your wins count.

Why Aim for 7%?

It sets a positive risk-reward ratio

It keeps you from exiting trades too early

It balances out losses from failed trades

A common risk-reward setup with the 3-5-7 rule is risking 3% to make 7%, which is slightly more than a 2:1 ratio.

Example:

If you risk $300, you aim to make at least $700 on that trade. This way, even if you only win 4 out of 10 trades, you could still end up profitable.

This mindset avoids the trap of taking small profits while letting losses run. It encourages patience and better trade selection.

Real-Life Example: How the 3-5-7 Rule Works in Practice

Let’s walk through a full scenario using a $10,000 trading account.

Step 1: Set Up a Trade

You identify a strong technical setup on a crude oil futures contract. You decide to risk 3% on the trade.

3% of $10,000 = $300

Your stop-loss is 15 points

Each point is worth $10

You trade 2 contracts (15 x $10 x 2 = $300 risk)

Step 2: Check Portfolio Exposure

You have one other trade open in the E-mini S&P 500 with $200 risk. Together, your total exposure is $500.

$500 ÷ $10,000 = 5%

You are within the 5% total exposure rule

Step 3: Set Profit Targets

You set a take-profit level that would net a $700 gain on the crude oil trade.

This is a 7% gain on your total capital

It creates a risk-reward ratio of a little over 2:1

Result

If the crude oil trade hits your stop, you lose $300. If it hits your take-profit, you make $700. As long as you stay consistent, your wins will outweigh your losses over time.

Trade Futures with a Small Account

Start your live trading application and begin with margins as low as $80 per contract.

GET STARTED

Tools and Techniques to Help Apply the Rule

Using the 3-5-7 rule effectively means staying organized, prepared, and disciplined. Fortunately, there are plenty of tools and techniques that can help you apply this framework with consistency.

Risk Management Tools

A position size calculator can help you quickly determine how many contracts or shares to trade based on your stop-loss and 3% risk cap.

Setting stop-loss and take-profit orders directly in your trading platform ensures you stay within your defined limits without needing to react in real time.

Keeping a risk log or trading journal helps you track how much exposure you have across trades and how well you’re sticking to the rule.

Trading Platform Features

Many modern platforms offer features that allow you to monitor total exposure across all open positions in real time.

You can create alerts that notify you when your total open risk approaches your 5% threshold, helping you avoid overexposure.

Platforms like MetroTrader give you access to customizable charting and risk-management tools that support strategy development and execution.

Mindset and Habits

Avoiding revenge trades after a loss helps you stay aligned with the 3% risk rule and keeps your emotions in check.

Sticking to your 7% profit target reduces the temptation to take profits too early or close a trade out of fear.

Following a routine that includes pre-trade planning and post-trade review builds long-term discipline and confidence in your system.

Benefits of Using the 3-5-7 Rule

This rule may seem basic, but it supports long-term success in many ways.

Protects your capital by limiting exposure and drawdowns

Builds discipline through clear risk rules and profit targets

Supports consistent decision-making regardless of market conditions

Improves trade quality by forcing you to prioritize risk-reward setups

Traders who apply this rule often stay more focused, more patient, and more prepared for losses. That mindset can make a big difference over time.

Limitations and Considerations

The 3-5-7 rule is not a one-size-fits-all solution. Like any strategy, it has some limitations:

It may be too conservative for small accounts or active scalpers.

It assumes that markets are liquid and easy to enter and exit.

It does not guarantee success without good trade selection and discipline.

Also, some traders may choose to modify the percentages over time based on their risk tolerance, experience, or account size.

How to Practice the 3-5-7 Rule on a Demo Account

The best way to build confidence using this rule is to test it with zero real money at stake.

Use a Demo Account To:

Try different trade sizes and stop-loss levels

Practice applying the 3%, 5%, and 7% limits

See how your strategy performs over 50 or 100 trades

MetroTrade offers a 30-day free demo account loaded with $5,000 in simulated capital. You can use this to apply the 3-5-7 rule in real market conditions and gain experience before going live.

Try a Free Demo Account

Should You Use the 3-5-7 Rule?

The 3-5-7 rule is a simple, effective approach to managing risk in trading. It does not rely on complex formulas or advanced tools. Instead, it gives you a reliable framework for making smarter trading decisions and avoiding emotional mistakes.

It works especially well for beginners and intermediate traders who want to improve consistency without overcomplicating their strategy. Even experienced traders can benefit from the discipline this rule creates.

If you want to trade with more structure and confidence, give the 3-5-7 rule a try. Start with a demo account, stay consistent, and adapt the rule as you grow.

FAQs

What is the 3-5-7 rule in trading?

The 3-5-7 rule is a trading risk management strategy that limits risk to 3% of your account per trade, restricts total exposure to 5% across all open positions, and sets a 7% profit target on winning trades. It helps traders control losses and improve long-term consistency.

How do you calculate 3% risk per trade?

Why is limiting total exposure to 5% important?

What does a 7% profit target mean in trading?

Is the 3-5-7 rule good for beginner traders?

Can futures traders use the 3-5-7 rule?

The content provided is for informational and educational purposes only and should not be considered trading, investment, tax, or legal advice. Futures trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results. You should carefully consider whether trading is appropriate for your financial situation. Always consult with a licensed financial professional before making any trading decisions. Crypto Roar is not liable for any losses or damages arising from the use of this content.

Technical indicators suggest strong momentum, with XRP trading in an ascending broadening wedge and targeting further gains if it remains above key support levels.
What to know:
XRP broke through the $2.20 resistance zone, supported by significant institutional investment in new ETFs.
The launch of Franklin Templeton’s XRPZ and Grayscale’s GXRP on NYSE Arca attracted $164 million, marking a shift in traditional capital access to XRP.
Technical indicators suggest strong momentum, with XRP trading in an ascending broadening wedge and targeting further gains if it remains above key support levels.
XRP’s technical landscape strengthened meaningfully as the token broke through the $2.20 resistance zone.

News Background
XRP’s move unfolded against a backdrop of significant institutional expansion into regulated XRP products. Franklin Templeton’s XRPZ and Grayscale’s GXRP both launched this week on NYSE Arca, pulling in a combined $164 million on their first day—one of the strongest altcoin ETF openings to date.
These launches mark a material shift in how traditional capital accesses XRP, offering regulated, broker-integrated exposure that historically wasn’t available.
The ETF traction follows a period of heavy distribution earlier in November, during which large wallets reduced exposure and derivatives positioning deteriorated. The new inflows suggest institutional rotation is stabilizing, aligning with improving technical structure on the charts.
Technical Analysis
The structure leading into the breakout featured three consecutive higher lows anchored at the $2.15 support level, indicating strong dip absorption and the end of the mid-November selling cycle.
Momentum built sharply at 17:00 GMT, with the breakout occurring on an 81% volume expansion—117.7M tokens traded versus the 65M average. This volume profile is characteristic of institutional confirmation rather than retail-driven volatility.
The session printed a clean V-shaped recovery with price moving from mid-session weakness back toward the highs near $2.26.
On the 60-minute chart, the final hour showed aggressive buying bursts (2.1M in a four-minute window), signaling a shift from passive accumulation to active breakout participation.
XRP continues to trade within a right-angled ascending broadening wedge, a pattern typically associated with continuation moves.
As long as price stays above $2.15 and especially above $2.00, the wedge structure supports further upside scenarios into the mid-channel targets around $2.60.
Price Action Summary
XRP climbed from $2.20 to $2.23—up 1.4% over the session. Price spanned a $0.10 range with 4.6% volatility.
Volume hit 117.7M during the breakout phase, up 81% from average, and multiple hourly spikes validated conviction buying. After peaking near $2.26, XRP consolidated above $2.23 with steady support.
In the final 60 minutes, XRP surged from $2.225 to $2.233 before profit-taking settled price near $2.226 heading into the close.
What Traders Should Know
XRP enters the next session with momentum, but upside continuation depends on clearing the $2.25–$2.35 resistance cluster. The $2.15 support remains the key line that determines whether the breakout holds.
ETF flows give a meaningful fundamental anchor beneath price, while technicals show fresh higher-low structure and renewed volume confidence.
A push above $2.26 reopens $2.35 and then $2.60 targets.
A failure to hold above $2.20 risks a retest of $2.15 and the broader $2.00 psychological zone.#WriteToEarnUpgrade #MyCOSTrade

Here are some key points about USDC:

*What is USDC?*

USDC, or USD Coin, is a stablecoin designed to maintain a 1:1 parity with the US dollar. It's a digital currency backed by a reserve of US dollars held in banks, regulated by US authorities.

*Key Features:*

- *Transparency*: USDC provides regular audits to confirm it's fully backed by reserves, giving users assurance that each token is worth exactly one US dollar.
- *Regulatory Compliance*: Circle, the issuer of USDC, follows strict US regulatory guidelines and is fully compliant with US laws.
- *Security*: USDC is known for its strong security and clear reserve backing, with 12% of reserves held in dollars in bank accounts and 88% in US Treasury bills with maturities of three months or less ¹ ².

*Use Cases:*

- *Everyday Transactions*: USDC is used for low-fee, quick payments, especially for cross-border transactions, due to its reliability and transparency.
- *Crypto Trading and Arbitrage*: USDC is used in crypto trading and arbitrage, providing a stable store of value and facilitating fast transactions.
- *Decentralized Finance (DeFi)*: USDC is widely used in DeFi for operations like trading, lending, and borrowing ¹.

*Comparison to USDT:*

- *Transparency*: USDC is more transparent than USDT, with regular audits and clear reserve backing.
- *Regulatory Compliance*: USDC has stronger regulatory compliance than USDT, which has faced scrutiny and controversy.
- *Market Adoption*: Both stablecoins are widely used, but USDC is preferred in DeFi and institutional settings, while USDT dominates exchanges and trading ¹.$USDC #MyCOSTrade