Category: Blockchain

Binance Trailing Stop loss / Take profit

What is Binance Trailing Stop loss / Take profit

A trailing stop-loss order allows traders to put a pre-set order at a selected percentage faraway from the market value when the market swings. It helps traders to limit the loss and to guard gains when a trade doesn’t move within the direction that traders consider unfavourable.

The trailing stop moves by a specified percentage (Callback rate) when the worth moves favourably. It locks in profit by enabling a trade to stay open and still profit as long because the price is occupation the direction favourable to traders. The trailing stop doesn’t withdraw within the other direction. When the worth moves within the other way by a specified percentage (Callback rate), the trailing stop will close/exit the trade at market value.

Binance Trailing Stop loss: the way to use?

Actually the trailing stop-loss order is enabled only within the Futures section of Binance.

Moreover, you’ve got to use the remake of the web site. In fact, a Trailing stop-loss order is supported on the newest version of the trading interface only.
If you’re within the Old version, you would like to click on the button “New Website” as within the figure below.

What is Binance Trailing Stop loss / Take profit 1 tralling stop order
Trailing Stop

How to enable Trailing stop-loss order?

When you are within the New Website, you would like to travel move the cursor on Triangulum near “Stop Limit” and choose “Trailing Stop”

Now you’ll see as within the below screenshot.

How does a Trailing stop-loss order work on Binance?

Traders can place a trailing stop-loss order when getting into an edge initially, though not common. The trailing stop might be placed as a reduce-only order with the aim to decrease or to shut an open position, too.

For an extended trade, a sell trailing stop-loss order would be placed above the trade entry. The trailing stop price moves up by a trailing percentage (Callback rate).
A new trailing stop price is going to be formed when the worth moves up.
When the worth moves down
, the trailing stop stops moving.
A sell order is going to be issued if the worth moves quite the predetermined callback rate from its peak price and reaches the trailing stop price. The trade is going to be closed with the sell order at market value.

A ”buy” trailing stop-loss order is that the reflection of a “sell” trailing stop order”.

For a brief trade, a buy trailing stop-loss order would be placed below the trade entry. The trailing stop price moves down by a trailing percentage (Callback rate).
A new trailing stop price is going to be formed when the worth moves down.
When the worth moves up, the trailing stop stops moving.
A buy order is going to be issued if the worth moves quite a predetermined callback rate from its lowest price and reaches the trailing stop price. The trade is going to be closed with the buy order at market value.

  1. Callback Rate
    Callback rate determines the quantity a trailing stop price will trail the worth. The callback rate range is out there from 0.1% to five by placing the speed manually within the “Callback Rate” field. Alternatively, quick options like “1%” and “2%” are available for quick selection.
  2. Activation Price
    Traders can fill within the price index that triggers the trailing stop. If no activation price is being filled, the activation price is going to be the market value by default (either “Last Price” or “Mark Price” subject to the selection of trigger types).

In order to put a buy trailing stop-loss order (SHORT POSITION), the activation price must be but the present market value .
The market’s lowest price must reach the activation price so as to satisfy the condition. If the worth doesn’t go below the Activation Price, the Trailing stop-loss order won’t start working.

What is Binance Trailing Stop loss / Take profit 2 sell trailing stop order for a long trade
Example: A sell trailing stop order for a long trade

Conversely (LONG POSITION), the activation price must be larger than the present market value to put a sell trailing order.
The market’s highest price must exceed the activation price so as to satisfy the condition. If the worth doesn’t go above the Activation Price, the Trailing stop-loss order won’t start working.

Activation price is employed so as to start out a Trailing stop loss/take profit only after a condition of price. So, if you place an activation price, probably you’ll get to place also a Stop loss order so as to guard your trade the case that the trailing stop loss doesn’t meet your Activation price condition!

  1. Reduce only-trigger (set in “Advanced” button)

It is typically obvious that the trailing stop loss is employed for reducing or closing your position and not for opening an edge. So you would like to activate the flag “reduce only-trigger” within the Advanced section.
I think it might be useful as a default flag, but actually it isn’t!

Advanced: reduce-only trigger flag and sort of trigger (Last Price and Mark Price)

  1. sort of Trigger (set in “Advanced” button)
    Traders could choose either “Last Price” (default) or “Mark Price” as a trigger. If traders select “Mark Price” as a trigger, when the Mark Price reaches or exceeds the activation price, the trailing stop is going to be activated albeit the Last Price doesn’t reach the activation price.

Please be noted that Binance uses Mark Price as a trigger for liquidation and to live unrealized profit and loss. The Mark Price is usually a couple of cents from the Last Price. However, the Last Price might deviate dramatically and significantly from the Mark Price during extreme price movements. Hence, please monitor the worth difference between Last Price and Mark Price. you’ll always cancel the order you’ve got placed and replace the order if you’d wish to change the Trigger from Mark Price to Last Price or the other way around.

Conditions for the activation

Please note that there are 2 conditions for the activation of the trailing stop-loss order, namely activation price and callback rate will get to be fulfilled so as to activate the trailing stop-loss order to be issued as an order to close/exit the trade.

A sell trailing stop-loss order (LONG TRADE) is going to be placed if the conditions are met as follows:

  • Activation Price = Callback Rate
  • Rebound Rate >= Callback Rate

A buy trailing stop-loss order (SHORT TRADE) is going to be placed if the conditions are met as follows:

  • Activation Price >= Lowest Price and
  • Rebound Rate >= Callback Rate
What is Binance Trailing Stop loss / Take profit 3 Place a Trailing Stop Order
Place a Trailing Stop Order

What is the difference between Trailing stop-loss order and Stop Loss Order?

Stop-loss order helps to scale back losses while trailing stop-loss order locks in profit and limit loss at an equivalent time.

Stop-loss order is fixed and has got to be manually reset while the trailing stop is more flexible and automatically tracks the worth direction.

Source: https://www.binance.com/en/support/articles/360042299292

Crypto.com Referral Code

How to Legally have a Free Spotify subscription ?

In this article, I’ll explain you how to have a free Spotify subscription legally and without cheating. You’ll also receive a free $50 bonus and more!
And no, it’s not like all this YouTube videos or fake website that tell you the same!

The concept is really simple : you must create an account on the website crypto.com.

What is crypto.com ?

I won’t explain everything about this website, but I can tell you the most important. First launched in Asia (in Hong Kong and Singapour), the company called Monaco quickly grew up to became now on of the best crypto website and platform.
The entire project is based on the MCO token that it officially launched in May 2017.

It has carried out several fundraising and obtained the VISA agreement in order to propose quickly payment cards. It was with the purchase of the Crypto.com domain name that the brand really took off.
Moreover, Crypto.com logically decided to conquered the United States and the Europe after successfully convinced the Asia.

Crypto.com is only a mobile software (you can’t access it with a desktop), available both on Android and IOS devices. It allows you to buy/sell cryptos, but also to have your own VISA card (I’ll explain more about it below).

How do I get my free subscription ?

Now that you know better what it is about, I’ll show you how to get your free Spotify account. Here are the 3 steps you must complete to do so :

1. Register on crypto.com app

First of all, you need to create a crypto.com account by clicking here. If you want, you can add my referral code to get a $50 bonus : a444xuu29j (it’s just free money!). Once the form completed, you can download the app on your mobile device.

You must then complete the information they’re asking for :

  • your personal information
  • photos of the front and back of your ID
  • a selfie in order to verify that you’re the one on your ID

This takes about 5 minutes. The verification will then be reviewed by the team, it should take no more than few hours.

2. Buy 1000CRO on the app

Wait, you just tell me it was free. Now I should buy 1000 CRO (about $155), so it’s not free ??!

Yes and no. In order to receive your crypto.com card, you must hold 1000 CRO for 6 months on your crypto.com account (you can receive your card before the 6 months though).

But after 6 months, you’ll be able to sell your 1000 CRO and keep all of your card advantages! And if you sell at the right time, you can even sell them at a better price than you bought it and win money.
You can get more information on the different cards and rewards here.

Once you receive your crypto.com card, you should use it on Spotify and get your free subscription (USD 12.99 equiv.). Moreover, you will get 2% cashback on ALL card spending with your card!
The rewards are given in CRO and not directly in your local currency (eg. USD), but you’ll then be able to sell your CRO to convert them and get them back on your bank account, or buy one of the 50 cryptocurrencies available on the app, and benefit one of the lowest commissions of the market!

If you want, you can also ask for a better card by holding 10000 CRO (about $1570) and get a free Netflix account (USD 12.99 equiv.), 3% cashback, Airport Lounge Access etc…

To sum up

If you want a free Spotify subscription and 2% cashback on ALL transactions, you need to stack 1000 CRO for 6 months on your crypto.com account (referral code a444xuu29j to get $50 bonus!).

And if you want a free Netflix subscription, 3% cashback and Airport Lounge Access, you should hold 10000 CRO for 6 months.

After those 6 months, you can sell them on the app to get them back or buy another cryptocurrencies.

So, ready to try it ?

Binance loans

How to get Crypto Loans from Binance

Now On Binance.com you’ll now get a loan in cryptocurrency secured by your crypto assets within the section “Earn” → “Crypto Loan”.

How does the crypto loan work?

Its quite simple. You can choose an amount to urge as a loan.

Minimum: 100.00 USD
Maximum: 1,000,000.00 USD

In order to require a loan, you would like to place an amount of cryptocurrency (es. BTC, ETH) as collateral, so as to ensure the repayment of the loan. The Collateral amount (mortgage) to use as a guarantee is adequate to the quantity requested as loan increased by the “Initial LTV” percentage (in this case 65%).

It means so as to require a loan of 10,000.00 USD you would like to possess 16,500.00 USD in cryptocurrencies (es. BTC).

The “Initial LTV” percentage depends on the cryptocurrency chosen as Collateral.

At the time of writing 65% for Bitcoin and 55% for Ethereum.

You can choose the Loan term (repayment date) for the repayment: once you are going to be obliged to repay the loan. you’ll always repay beforehand and therefore the interest is calculated supported the effective days.

Binance load for crypto currency
Binance loan for crypto currency

At the top of the loan (or at the day of repayment), you’ll be asked to pay also interests.
Interest is calculated daily, and fewer than at some point is calculated together day. The rate of interest is decided by the date you create the loan.
In the form, you’ll see immediately calculated the quantity of interest due if you wait till the Loan term for the repayment. within the example, the interest at the expiration date is adequate to 17.08 USDT = 10,000 (loan) * 0.0244% (interest) * 7 (days).

If the worth of your collateral drop an excessive amount of , there’ll be a liquidation event. meaning that Binance will sell your collateral cryptocurrencies on the market and repay automatically the loan. you’ll revisit the residual amount of collateral that doesn’t need for repaying the loan.
The liquidation event happens when the worth expressed in BTC of the Loan + Interest due is more or equal (≥) to the Collateral BTC value multiplied for the “Liquidation LTV” (in the instance 83%).

In the example (approximation)

BTC/USDT = 6440

Liquidation event when BTC/USD drop under 5,050 calculated as follow

10017.80 (loan+interest) / ( 2.39 collateral * 83%)

The “Margin Call” is straightforward an automatic reminder sent to your email, as an alert that the collateral is near the Liquidation LTV, so you would like to extend the collateral amount if you don’t want to risk a liquidation event.

What can I do with the loan?

You can trade on Binance.com freely with your loan.

  • Spot trading
  • Margin trading
  • Futures trading
  • Withdraw (yes, you’ll also withdraw the quantity and use it outside Binance)

You can use our referral codes within the relative sections so as to require advantage of the discount in Spot/Margin and Futures trading on Binance

Source: https://www.binance.com/en/blog/421499824684900578