How to open scalp trades on Binance?
By Vladyslav Yudashkin Updated November 21, 2022
Well, you have registered on the exchange, you have already deposited money and you are interested in how to buy coins, how to sell, and in general, you just don’t understand half of the interface.
In this article I’m going to describe the specific steps you need to take to buy BTC, ETH, XRP, DOGE. This will help you to get comfortable with the interface and understand:
- the difference between limit orders and market orders;
- what a limit order is and how to use it;
- how to set a stop-loss;
- how to set a take-profit.
Everything is simple here. In order to open scalper positions you need to use futures. You can find them in the navigation as follows:
When you get to the main page, you have to find the instrument that you are going to trade by hovering over the current instrument and using the search:
What is the difference between limit and market orders?
In a market order you simply enter how many coins you want to buy or sell and the exchange immediately executes your order at the market price.
When you place a limit order, you have the option to specify the price you want to buy/sell the coin for. Let's say a BTC is worth $40,000, and you want to buy it for $30,000. You specify a limit price of $30,000, choose the quantity you want to buy and as soon as the price approaches the specified value, your order is activated and executed by the market.
How to place a stop-loss and take-profit on Binance for a scalper?
Since scalping is a very fast-changing industry, it is important to open trades as quickly as possible. That's why scalpers use market orders and professional terminals.
When you open an order, you can set a stop loss in the next menu. If you don't have time to look up the stop loss in TradingView, you can use the good old calculator to determine it. For example, you need to open a long position with a 1% scalper stop-loss. The formula is as follows:
(stop-loss point) = (entry point) * 0.99
Let's assume that we need to place a take-profit right away when the price goes up 3%. The formula is as follows:
(take-profit point) = (entry point) * 1,03
Once you've mastered the base, in the next article you'll learn how to use TradingView. This service for technical analysis makes a trader's life times more convenient, and no perfect trade can do without it. See you next week and see you at the DOM.