Binance stop loss
A stop-loss order is an order to sell a stock when it falls below a certain price. This will occur without the trader knowing that the price has fallen below a certain minimum threshold.
This is to prevent the trader from losing a great deal of money due to the price of a stock suddenly dropping to a very low level before the trader realizes that the stock is falling. The cryptocurrency exchange Binance allows traders to place stop-loss orders and sell their cryptocurrency automatically before the price of the stock drops below a minimum set by the trader.
A stop-loss order is not guaranteed to work either with cryptocurrency or with shares in general. If the market is falling rapidly, there might not be anyone willing to buy the stock. Setting a stop-loss order at 10% lower than how much one bought the stock for will generally prevent you from losing more than 10% of what you invested.
In the volatile cryptocurrency market, setting a stop-loss order at only 10% lower than you bought the stock for is not necessarily feasible. A cryptocurrency can frequently lose value for a short time and then recover. For this reason, stock traders on Binance often set their stop-loss orders to risk the loss of much more than 10% of the price they bought the currency for.