How to create stop loss and take profit target to trade crypto on Binance successfully

How to create stop loss and take profit target to trade crypto on Binance successfully

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For the modern crypto trader it is really important to understand how trade orders work on Binance and what benefits and drawbacks they will bring when exercising your trading skills. In this article we will be talking about the different types of trading orders and explain how they vary from each other. We will be discussing OCO orders, sell limit orders, and stop limit orders, and their differences from market orders, we will also be discussing their advantages and disadvantages and the scenarios they must be used while trading.

OCO Order

OCO stands for One Cancels the Other, where you can place two orders at the same time. OCO combines a limit order and a stop-limit order in it, but only one will be executed.

Once one order has been fulfilled in its whole or in part, the second order will be immediately cancelled.

On the Binance Exchange, OCO orders can be used to automate trades. When using this feature, you may be able to place two limit orders at once, which can be helpful for capturing profits and limiting losses.

With OCO, you have a simple, yet effective way to make trading safe and flexible for yourself. You can use this order to lock in profits, to limit risks, or even to enter or exit positions.

Sell Limit Order

A limit order is a kind of order that is put on the order book with a price limit that is set by the customer. If you want to set a maximum price, you must do so. When a limit order is placed, the deal will only occur when the market price reaches the limit price (or better). In this way, limit orders can either be used to buy at a lower price or sell at a higher price than what the market is currently offering.

As a market maker, limit orders are not executed immediately, unlike market orders, which are executed immediately at the current market price, which allows you to save money.

Stop Limit Order

Combined with a stop-loss order, a limit order is known as a stop-limit order.  By putting a stop-limit order on a trade, traders can set the minimum profit they’d be willing to take or the maximum loss they’re willing to take. Whenever a limit order is placed, even if you are offline or logged out, a stop-limit order is automatically initiated. When determining stop-limit orders, you can take into account the strength and weakness of resistance and support levels, along with the volatility of the asset.

In the case of a stop-limit order, it means that a limit order will be placed after the stop price has been achieved. Limit prices are the prices at which orders will be placed. For a buy order, you can set the limit price higher than the stop price, while for a sell order, you can set it lower. The difference stems from changes in market prices between the time that the stop price triggers and the time that the limit order is placed.

Market Order

Market orders are the most straightforward kind of trading order. If traders wish to be sure their trades are executed, they will place market orders. Orders are placed on the market instantly whenever they are placed. In essence, it is a trader’s order to buy or sell crypto at the current price.

Typically, market orders are executed immediately, or nearly so. The term “order filled” is used by traders when there has been a completed market transaction. In order to be executed, a market order must always be filled instantly. In the market, there are buy and sell orders.

How is it different?

When a Market order is placed, it implies that the order will be placed “at the market”. In other words, market orders are transactions designed to complete as rapidly as possible at market prices. In contrast, when you talk about Limit orders, you are talking about placing the order “at the limit”. Therefore, limit orders establish the highest or lowest price you would like to purchase or sell.

The execution of a market order is the primary concern of the order. In other words, the value of the underlying is subordinate to the speed with which the deal is completed. Pricing is the primary concern for limit orders. Due to this, any transaction involving assets that no longer meet the parameters specified in the limit order is canceled.

Pros & Cons: Market Order and Limit Order

The benefits and drawbacks of a market order and a limit order are primarily determined by the trading situation you are in. So, what appears to be a disadvantage for you in a trade order may not be for the other trader. That is why, while trading, you should keep the following essential things in mind as the benefits and downsides.

  • Don’t place market orders if your asset is highly volatile. In any other case, you may pay much more than you expected.
  • If the asset you are purchasing has a high level of liquidity, market orders are ideal.
  • Market orders are a smart option for those who have limited time. Perhaps you should consider a limit order if you don’t need to act quickly.
  • A market order can also be useful when you anticipate a big event that may result in a shift in asset value. Thus, you must purchase or sell (depending on the asset’s market)  this asset so soon that its price soars or falls.
  • You should be aware that limit orders may not execute even if the price reaches your target. Basically, it happens when you order before another order for the same price. Those who come first will get their turn first. This turn for the other party is probably never going to happen.
  • Almost all exchanges allow you to edit your limit orders so that the price may be adjusted as the market changes. It is also fairly easy to cancel them. It might be a problem to cancel an order that is already in progress (i.e. it is filling).
  • Since market orders tend to fill very quickly, you cannot cancel them.
  • Limit orders generally have lower fees than market orders

Pros and cons: OCO order


  • Allows you to combine two limit orders (limit order and stop-limit order) at the same time.
  • Enhances profitability by making it easier to manage risks.
  • Simple but powerful, this technique has numerous benefits.


  • Wrong predictions can result in huge problems for traders.
  • Requires knowledge of both limit order and stop-limit order.


In the end, it mostly depends on your skill level, your knowledge and your end purpose through trading. All of these trade orders have their positive and negative sides. So, in the end, the decision is yours to take which kind of trade order you are willing to go through. Still, we believe it is confusing for every trader to choose the right option among so many communities available on Telegram.

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MyCryptoParadise has over 6 years of experience in providing cryptocurrency trading signals which could easily be lauded as some of the best signals in the market today. Our platform holds this status because we continue to offer some of the most intuitive technical analysis, educational content, current updates, and news reports in the industry that greatly benefit our customers by allowing them to take the edge over their competition. 

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