How to secure Binance position OCO (Spot mode) TP + SL

When you take a position on a market, it’s very important to always set an affordable security level and also an exit at profit level.

To manage these parameters we have mainly 2 different tools :

– the Take profit

– the Stop loss

The take profit is that level you wish to exit the position, you choose a value at profit and wait for the market to hit your target.

The stop loss is another level you wish to exit the position if it goes the wrong way you expected.

Here is an example of a simple long setup.

As you can see it’s been successfully hitting Take Profit target and was secure all the way along if for any reason, market would go the other way in a very short period of time, making you unable to react in time.

You also need to trail your trades, adjusting stop loss value when the trade is in positive territory.

Like in this example, after the 2 first big green candle, you have confirmation that market wish to go higher and actually try to.
You can change your Stop loss for a “Break even” value or a small profit value to ensure the trade won’t cost you anything, no matter what’s happening in future.

This is also very important to understand.

This is the perfect way to manage a trade.

So how do I do this on Binance Spot trading (no leverage).

There’s two way to take position, Maker or Taker.
Maker will set a limit order and wait to be filled.
Taker will set a market order that will instantly be filled with market value.

Now that you have a position you need to manage the profit and risk.

So you will set a take profit or multiple take profit level.
And also you need to set a Stop loss.

You can do it manually, But to set both orders on Binance Spot trading interface, you will need to use the OCO mode.

Click and select OCO mode on the top right corner.

First value is Take profit limit value.

Second is Stop loss trigger value.

Third is real Stop loss limit order value that will be set when Stop loss trigger value is hit.

(Always choose a lower value to be sure to be executed)

This OCO mode will cancel the stop loss if take profit is hit, or it will cancel the take profit is stop loss is hit.
It’s a good automatic way to handle both Take profit and Stop loss on same position.

Once you understood how to properly use this interface, you will be ready to work on how to identify good setup to trade.

Being familiar with interface and deeply understand how does it works and what all functions do, is very important. You need to train yourself to be the most accurate and efficient when it’s time to take position. The more reactive you are, the better entry timing you will be able to play with.

The positioning process should take the less time as possible, that only take training and muscular memory.

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