The smart security tool: Trailing Stop 🚀
Are you tired of seeing your profits evaporate when the price suddenly reverses? The trailing stop is the solution to ensure that these profits turn into real confirmed profits in your pocket!
It is not just a regular "stop loss" order, but your personal guardian in the market.
💡 How does Trailing Stop work? (The mechanism intelligently)
You set a fixed distance (points or percentage) between the current market price and the stop-loss level.
In the right direction (you are winning): Whenever the price of the digital asset (like BTC or ETH) rises, your stop-loss order automatically moves with it, maintaining the same distance you set. This ensures you are "securing" profits continuously.
When the price reverses (risk): If the price starts to drop and moves toward the stop-loss, the Trailing Stop order stops moving and remains fixed at the last level it reached.
Safe exit: If the price continues to drop and reaches the fixed stop level, the trade is automatically closed at a profit (or with a much smaller loss), protecting you from a significant downturn.
💰 A simple practical example:
The deal: I bought BNB at a price of $300.
Trailing loss: I set it at $10 (approximately 3.3%).
What happens:
The price rises to $350. The trailing stop follows it and becomes at $340. (You have secured a profit of at least $40.)
The price suddenly reverses and drops to $340.
The result: The trade is automatically closed at $340, and you exit with a safe profit instead of waiting to lose all profits.
🔑 When to use it on Binance?
• To take full advantage of trends: When you are sure of a strong upward trend and do not want to exit early.
• For trading without continuous monitoring: It allows you to secure your profits even when you are away from the screen.
