Register for Binance to start futures trading with proper risk management. Download the Binance APP for mobile trading. Take-profit (TP) and stop-loss (SL) are the most important risk management tools in futures trading. Our site shows you how to set them up.
What Are TP and SL?
- Take-Profit (TP): Automatically closes your position at a target profit level
- Stop-Loss (SL): Automatically closes your position to limit losses
These orders execute automatically, protecting you even when you are not watching the market.
How to Set TP/SL
Method 1: During Order Placement
- Open the futures trading page
- Before placing your order, tap "TP/SL" option
- Set your take-profit price and stop-loss price
- Place the order -- TP/SL is attached automatically
Method 2: On an Existing Position
- Go to the "Positions" tab
- Find your open position
- Tap the TP/SL icon or "Set TP/SL"
- Enter your target prices
- Confirm
TP/SL Strategy Tips
For Long Positions
- Stop-loss: Set below your entry price (e.g., 2-5% below)
- Take-profit: Set above your entry price at your target profit
For Short Positions
- Stop-loss: Set above your entry price
- Take-profit: Set below your entry price
Risk-Reward Ratio
Aim for at least 1:2 risk-reward. If your stop-loss risks $50, your take-profit should target at least $100.
Trailing Stop
Binance also offers trailing stop orders that follow price movement. The stop price adjusts as the price moves in your favor, locking in profits.
Common Mistakes
- No stop-loss: The #1 mistake that leads to large losses
- Stop-loss too tight: Gets triggered by normal price fluctuation
- Moving stop-loss further away: Hoping for a reversal instead of accepting the loss
- No take-profit: Greed prevents locking in gains
FAQ
Can I set both TP and SL simultaneously?
Yes. You can set both on the same position. Whichever triggers first will close the position.
Are TP/SL guaranteed to execute at my price?
In normal conditions, yes. During extreme volatility, execution may be slightly different from your set price (slippage).
Can I modify TP/SL after setting them?
Yes. You can adjust or cancel TP/SL orders anytime the position is open.
Do TP/SL orders cost extra fees?
No extra fees. Standard trading fees apply when the order executes.
Security Tips
- Always set stop-loss on every futures position without exception
- Set TP/SL before entering not after -- avoid emotional decisions
- Use reasonable levels based on support/resistance and risk management
- Do not remove stop-loss hoping for a reversal
- Backtest your TP/SL strategy before using real money
Register for Binance and always trade futures with proper take-profit and stop-loss protection.