First of all.. Lets talk about the difference between Limit Orders and Stop-Limit Orders:
We know this could be confusing (Don’t worry, here you have an example)
Limit order: i.e. Your price is currently 98 and you want to buy with an order price of 100, then your order will be filled as 98 is even better price than 100. Now Imagine price is 105 and your order price is 100 then your price is waiting to be at least 100 in order that your order get filled. you are waiting your price or better price to be filled…
Stop-Limit order: i.e Your price is 98 and your order Stop price is 100 and limit price 97, then your order WON’T be filled immediately in this case as you are waiting the price to reach (mandatory) 100 (stop price) and once the price reaches 100 level, then now you are looking to buy at 97 (limit price) (meaning that you dont want to buy at 100, you only wanted the price to reach 100 to buy it then back at 97 (so the price needs to retrace to get filled)
Let me show you step by step how to put take profit and stop loss on Binance using the Limit order:
And here is the order Stop limit step by step:
And in case you want to open a market order, here is how you do it:
Very important Tip : Don’t forget to put your Profit Targets because we can close our trade sooner than expected taking advantage of market volatility. Look in chart below how PRICE peaked for some minutes triggering all our Profit Targets then came back to normal but who cares, we took advantage of the peak and took our profits out from the market :)! It happens also to the down, but don’t be fooled by the market and don’t let those peaks to trigger your stop loss and wait the market to be back to normal: Summary: Let the peaks activate your profit targets but not your stop losses
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