Two ways to take profit on Binance, anyone can do it
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Binance Futures or a CFD broker’s trading platform usually stops loss and takes profit setting on each trade. However, on Spot Binance, there is only an operation to place regular orders. So when trading on Binance, do you want to set profit? The following article shows how to take profit when trading Spot on Binance.
What is a Pending Profit Order on Binance?
A pending order to take profit is a pending order that allows a trade to be automatically closed when a preset profit level has been reached. With a previous BUY order on Binance, take profit using a SELL Limit order. The price of the pending limit order is higher than the entry price. Conversely, if there is a SELL order on Binance, the take-profit order uses a BUY Limit order with a limit order price lower than the entry price.
Why place a take-profit order?
Placing a take-profit order helps users preserve the trade’s profit when the price has reached the expected level at any time. The cryptocurrency market is often volatile and constantly changing. When executing a transaction, if the price has reached the expected profit level, the take profit order helps to secure that trade.
If there is no take profit order after the bull market, the cryptocurrency will plummet, and it may take a long time to return to the previous price increase. If users do not monitor the market continuously and do not set profits, they may miss the time to take profits.
How to take profit on Spot Binance?
To set take profit for spot trading on Binance, users can use Limit order. Suppose a user needs to take profit for a BUY BTC/USDT order. That is, users need to take profits on USDT after BTC price increases. Thus, placing a SELL limit order for the BTC/USDT pair is necessary.
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- Log in to your Binance account, click on the Trade tab, and select Classic (or Advanced depending on which interface the user prefers to use).
- Select the coin pair you want to take profit: BTC/USDT
- If you want to set a take profit for a BUY order, select the Limit tab
- In the SELL window, enter the price you want to take profit in the Price box. This price needs to be higher than the current price and higher than the entry price.
- Enter the volume of BTC you want to take profit or drag the horizontal bar below to choose the percentage of BTC volume you want to take profit.
- Click SELL BTC
After placing an order, the order you just placed will be displayed in the pending orders window [Open Order]. If you want to cancel the take-profit order you have just placed, click the [Cancel] symbol at the end of the order line.
The user has a SELL BTC/USDT order and needs to set a take profit. It is necessary to place a BUY limit order for the BTC/USDT pair. Then, the Price box needs to enter the price lower than the current price and lower than the entry price.
How to take profit and stop loss with OCO order on Spot Binance?
On Binance Spot, it is possible to place a combined stop loss and take a profit order using an OCO order. Like when using Limit orders, when there is a BUY order, you need to use a SELL OCO pending order to place a stop loss and take profit. And when you need to set stop loss, take profit for the SELL order, you need to use the BUY OCO order. Proceed as follows:
- On the Trade tab, select Classic or Advanced.
- Select a trading pair.
- On the Spot order window, click on the small triangle in the order type selection section, and select OCO.
- In the Price box, enter the take profit price.
- In the Stop box, enter the price to activate the stop loss order.
- In the Limit box, enter the stop loss price.
- In the Amount box, enter the volume of the order you want to place stop loss and take profit.
- Click SELL BTC to confirm a stop loss combined with profit taking for a previously executed Buy BTC order.
Conclusion: Some experience in taking profit
When making a trade, the user needs to define the expected stop loss and take profit points in advance. This helps to ensure that the trading plan is correct. However, the ratio of placing a stop loss, take profit should be appropriate. If take profit is too close, the profit margin may not cover the transaction costs. If the take profit is too far and the transaction cannot execute the take profit order before the market reverses, it will not implement the trading plan. Once the ideal take profit level has been determined, be sure not to change the rules so that the trading sentiment doesn’t change as the market moves.
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