<center>![BASE HEADER binance stoploss5.png](https://steemitimages.com/DQmREY9vTBPeS5wnkwkzRL8W4hbLAhcSgAK51UvmWgkGkVP/BASE%20HEADER%20binance%20stoploss5.png)</center>


<h3>**To avoid unnecessary losses on cryptocurrency trading, it can be a very good idea to set a Stop-Limit order on the exchange you're trading on. This post serves as a short guide and how-to explanation of how to set up a Stop-Limit order on the Binance Exchange.**</h3>

Most people begin with trading **Market orders** or by setting **Limit Orders** where you can buy for market price or set up a specific price at which you're interested in buying or selling. A recently added extra feature is that of the **Stop-Loss or Stop-Limit** feature. The wording differs between exchanges, but Binance calls this feature a Stop-Limit order.

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<h3>What is a Stop-Limit order</h3>A Stop-Limit order will let you create a certain order which will only trigger when a certain price is met. For example, if you have recently bought into a new cryptocurrency and it's price goes up by 20% and you want to 'lock in' some profits you can set up a Stop-Limit order at 15% profit, which is 5% less than where it currently is at. If the price should then fall back down below the 15% profit threshold that you set, your Sell Limit Order will be placed on the Order book and trigger to avoid losing more of your profits. The 15% threshold that you created with the Stop-Limit order prevents you from that.

Similarly, if you just bought in and want to protect your investment, you may set a Stop Limit order just below your buy-in price so that if the price should fall you can mitigate the damage and keep your losses to a minimum.

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<h3>Stop-Limit on Binance</h3>On the Binance Exchange you can find the option for the Stop Limit order on the Tab illustrated below. It will take you to the screen shown on the picture below:

<center>![binancestoplimit.png](https://steemitimages.com/DQmNxjS38rmkUMPQTkvthPmRF1xuivWEyADwxrRGMotDL1p/binancestoplimit.png)</center>

There are three parameters that we need to enter:
* The 'Stop' price
* The 'Limit' price
* The amount of tokens we want to sell

**For the Stop Price:** Under Stop price we enter the price at which we want our Limit order to appear on the orderbook. 

**For the Limit Price:** Under Limit price we enter the price at which we actually want to _sell_ our token.

**For Amount:** For amount, we simply enter how many tokens we wish to sell.


<center>![binancestoplimitexplained.png](https://steemitimages.com/DQmckGoZkgGdUx6M1ufSc9TX8VqqFhRKprWHtinCyjrDY16/binancestoplimitexplained.png)</center>

The Stop-limit order allows for a lot of flexibility. You can also use the same mechanism to buy. Perhaps you are waiting for a crypto to break out of a channel. You could then identify at which price you consider it a buying opportunity, and then set a buy price at the break-out level. Similarly, if your investment trends downward you can automatically react to it through the Stop Loss. 

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For newcomers it can be hard to figure out what to enter in each field for the Stop-Limit order, and so I made this short guide in the hopes that it will help somebody out and make it a little more clear. 

Especially with Bitcoin going up and down it is usually quite easy to recognize critical support levels. When the BTC value goes down, Stop-Limit orders let you sell when the support breaks and buy back in at a lower support at the same time.

I hope this helps some of you. Happy trading (and merry Christmas)!

<h2>[To visit Binance Exchange click here (no referral)](https://www.binance.com)</h2>

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