Traders can use Binance’s trailing stop feature to take advantage of the market’s upswings. When the price of a particular stock starts to go up, the trailing stop is triggered, allowing traders to sell at a higher price. However, this can only be used in the context of a long position. In other words, if a long position is closed, the trader will lose the money if the price of the stock goes down again. If the trader is looking to ride the upswing, however, the trailing stop is a great way to get out of the market with a big profit.
Trailing stop orders are only triggered during regular market hours. During extended hours, they won’t be routed for execution. This is because the market may be undergoing high volume or volatility. As a result, execution prices may be slightly below the trailing stop’s activation price. The best way to avoid this is to set a callback rate that’s low enough to allow for the market to fluctuate but not too low that the order will be canceled.
Trailing stop Binance can be used as a limit order as well as a stop order. When a price goes up, the trailing stop order’s activation price moves up, as does its percentage. This is because the trailing stop’s percentage is based on the price of the stock and not the time of day. This makes it easier for traders to take profits without having to continuously monitor the market. The trailing stop is also helpful in avoiding losing money from a sudden drop in the price of a stock.
In order to set the trailing stop’s activation price, traders must first decide on the best “trigger” price. This price can be based on a custom positive loss, or the market’s highest and lowest price. The market’s highest and lowest price must reach or exceed the trigger price to be considered a good trigger price. The trailing stop’s activation price is a good example of a small number that’s easy to calculate in practice. It should be no more than a few points above the current market price. If you want to set a very high activation price, it may not be possible.
The Trailing Stop’s Mark Price is generally similar to the Last Price, although it can deviate dramatically in extreme price movements. It’s not uncommon for the price of the mark price to be several points below the last price. However, the mark price does have the benefit of being a more reliable trigger than the last price. It also has the benefit of being a more precise trigger than the last price, since it is calculated with the market’s unrealized profit in mind.
The Trailing Stop’s Last Price is similar to the Mark Price, but it doesn’t have the same level of accuracy. The last price will trigger the trailing stop if it’s less than the mark price, but it’s not guaranteed that it will. The last price can also deviate dramatically from the mark price in extreme price movements.