Binance offers two types of trailing stop Binance orders: the limit and the vanilla. You can choose between these two depending on your needs. In the limit, you can configure a percentage to trigger a trailing stop. The latter is more useful in volatile markets.
Trailing stop loss orders help you close out your investment without losing too much money. However, you should be aware that a trailing stop does not guarantee a profit. Instead, you are likely to lose money if the price of your stock drops below your set percentage. To keep your risk in check, use a tighter trailing stop loss. This type of stop can be useful during times of volatility, but it can also work in a stable stock.
A trailing stop order is a great way to lock in a profit when the market moves in your favor. You can choose between setting the order to a percentage and to a mark price, or both. Whether you choose a mark or a percentage, the most important thing is to choose an activation price that is higher than the current market price. It can also be beneficial to use a higher callback rate, but this is only recommended during times of high volatility.
With binance, you can also use a trailing stop in conjunction with a take profit or stop loss order. Using this combination of orders can increase your profit potential. For example, you can attach a trailing stop sell order to a Binance futures position, and have it buy a position back when the price reaches a certain level. Then, when the price reverses, the take-profit will automatically be triggered. By combining the take-profit and stop-loss with a trailing stop, you can ride the trend of a rising market to capture maximum profits.
If you are planning to buy or sell using a trailing stop, be sure to calculate the exact percentage that you need to achieve your desired result. This can be done manually, or by choosing the ‘last price’ option. Keep in mind that a tighter stop loss is better in a stable market, while a wider one is ideal for a volatile one.
While the trailing stop is the best known feature of the binance platform, it has more features that can be beneficial for traders. These include the ability to use a leverage up to 125x, and the ability to adjust your order to increase your profit. Moreover, GoodCrypto allows you to set the entire trading strategy with just a few clicks. And with its 14-day free trial, you can try out the app before you pay for it.
Another interesting feature of the app is its ability to cancel stops when they are executed. It can be useful in certain circumstances, and can be used to cancel the worst possible orders in the blink of an eye. Lastly, it is also worth mentioning that it does not freeze your account.