Trading futures without a stop-loss is like driving without a seatbelt — it's only a matter of time before something goes wrong. Learning to set stop-loss and take-profit is a required skill for every trader. If you don't have an account yet, register on Binance first, then download the Binance APP to start trading futures on your phone.
What Are Stop-Loss and Take-Profit?
- Stop-loss: Automatically closes your position when the price reaches a certain level, preventing losses from growing further
- Take-profit: Automatically closes your position when the price reaches your target, locking in profits
Example: You open a long BTC position at 60,000. You can set a stop-loss at 59,000 (maximum loss of 1,000) and a take-profit at 62,000 (lock in 2,000 profit).
How to Set Them When Opening a Position
On the APP
- Go to the futures trading page
- In the order area, you'll see a "TP/SL" option — toggle it on
- Enter your take-profit price and stop-loss price
- Place your order as normal
This way, the position and TP/SL are set together — very convenient.
For Existing Positions
If you already have an open position without TP/SL:
- Find the "Positions" tab at the bottom of the futures page
- Tap your position
- Select "TP/SL"
- Enter the prices and confirm
Trigger Methods for Stop-Loss and Take-Profit
Mark Price vs Last Price
When setting up, you can choose whether to trigger on "Mark Price" or "Last Price":
- Mark Price: More stable, less likely to be triggered by momentary price spikes
- Last Price: The actual trading price
Using Mark Price is recommended to avoid being caught by "wicks" or flash crashes.
How to Think About Setting TP/SL
How to Set Your Stop-Loss
- Base it on the maximum loss you can tolerate
- Reference key support/resistance levels
- Generally keep single-trade losses to 2%-5% of total capital
How to Set Your Take-Profit
- Aim for a risk-reward ratio of at least 1:1, ideally 1:2 or better
- For example, if your stop-loss is 100 USDT, your take-profit should be at least 200 USDT
- You can also take partial profits — close half at the first target
Common Mistakes
Not Setting a Stop-Loss
This is the most dangerous. When the market reverses, you can only watch losses grow, potentially leading to liquidation.
Setting Stop-Loss Too Tight
If the stop is too close, normal price fluctuations will trigger it, and then the price moves back in your favor — resulting in unnecessary losses. Give the price enough room for normal movement.
Moving the Stop-Loss
You set a stop-loss properly, but as the loss approaches, you keep moving it further, thinking "maybe it'll come back." This mentality is very dangerous — once set, don't change it lightly.
Stop-loss and take-profit are expressions of trading discipline. Consistent execution is what keeps you in the market for the long run.