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How to Trade on Binance for COMPLETE Beginners (Binance Spot Trading Tutorial) — Transcript

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0:00In this video, I'll show you how to
0:01trade on the Binance spot trading
0:02platform, including what everything on
0:04this screen means, how to buy and sell
0:05and use all of the different order
0:06types. So, if you're new to Binance,
0:08I'll leave a link below. If you sign up
0:10by that link, you can get an extra
0:11bonus. I'll also leave links to the
0:12other exchanges I use. You can get some
0:14great bonuses on those platforms via
0:15those links as well if you're a new
0:17user. But firstly, if your screen
0:18doesn't look like this, then you want to
0:20go to settings in the top right. And
0:22then up here, go to layout. So,
0:24preference and layout. I just use the
0:26advanced layout. This is what most uh
0:27trading platforms in crypto look like.
0:29Uh so it's just easy to switch between
0:31them once you've gone to the advanced
0:32layout here. It's all the same
0:34information. Uh but as you can see, this
0:36is really what most uh trading platforms
0:38look like. If we go back to settings,
0:40you might want to see my preferences as
0:41well. You can change this as you want.
0:43Most of this is just notifications for
0:45different orders that you may put in and
0:46stuff like that. So I'll get myself out
0:48the way. You can see everything here if
0:49you want to screenshot that and just
0:51have the same uh notifications and
0:53everything, but it's up to you. The
0:54first thing we need to do is choose the
0:55pair of assets that we want to trade. So
0:57if you want to buy one asset, that means
1:00the other side of the pair is the other
1:02asset that you're selling. You need some
1:04value in order to sell to buy the other
1:06asset. And that's a trading pair. So
1:09what we do is search for the asset that
1:10we want to buy and then we just choose
1:13the trading pair against the other asset
1:15that we're selling. For the most part in
1:17crypto, people will on-ramp via stable
1:19coins. Uh so either USDC or USDT.
1:23If you've on-ramped cash into crypto,
1:26then you buy a crypto asset. If you sell
1:28out, most people will just go back into
1:29a stable coin. That keeps the that keeps
1:31the value in crypto. Um, but you don't
1:34have to hold the fiat currency in your
1:35account. It depends which country you're
1:37in. A lot of countries will just use
1:38dollar stable coins. That makes it a lot
1:40easier. Uh, so USDC, USDT, and then you
1:43can find the trading pair. There are
1:44fiat currencies supported on Binance as
1:46well. So, if you click fiat, you can see
1:48them here. In my region, there aren't
1:49any, but in your region, you may have
1:51euro trading pairs, for example. And so
1:53you can just on-ramp your fiat currency,
1:56leave it there and then switch that into
1:57crypto assets and back out. That makes
1:59it easier to offramp. Um, it makes it
2:01easier for reporting as well. If you've
2:03got tax reporting for profits and stuff,
2:05that's going to be in your local
2:06currency. So you may want to choose fiat
2:09currency trading pairs. For me, I'll
2:10just show you USDC pairs right here. So
2:13most all assets are going to trade
2:15against USDC and USDT, the dollar stable
2:17coins. So, if you've got an asset that
2:20you want to buy, you can search for it
2:21here like this. So, the ticker for
2:24Bitcoin is BTC. And then it just shows
2:25you all the different trading pairs that
2:27we can trade against BTC. I've got some
2:30USDC in my account. So, that's the one
2:31I'm going to sell. On the right hand
2:33side, this is the asset that you're
2:34selling. And this is the asset that
2:36you're buying. However, you can just
2:37click buy sell on these. So, really just
2:39think about the trading pair. If you
2:41want to buy Bitcoin and you have USDC,
2:42you need to choose this trading pair. If
2:44you want to sell Bitcoin back into USDC,
2:46you choose this trading pair as well.
2:48And then you can click on the right hand
2:49side buy and sell. Now if you want to
2:51trade a crypto asset into another crypto
2:53asset so not a stable coin you can do
2:54that as well mostly for the major pairs.
2:57So you can see as I scroll down bitcoin
2:58is a trading pair against virtually all
3:00assets in crypto. All of the different
3:02assets that you want to buy you can
3:04trade them directly from BTC. So if you
3:06want to switch BTC into ETH for example
3:09I can search for that. So BTC/ ETH we
3:12have it right here. So, if I've got some
3:14Bitcoin and I want to take some value
3:16from Bitcoin and switch it into ETH, I
3:18don't have to go Bitcoin, stable coin,
3:20stable coin, ETH. I can just go Bitcoin,
3:22ETH, trading pair and switch them up.
3:24And then you can just trade directly.
3:26There aren't trading pairs for every
3:27single asset though. If you have smaller
3:28assets, you won't be able to find the
3:30trading pair. And so, you do have to
3:32sell your asset into a stable coin, use
3:34a stable coin value to buy another
3:35asset. So, larger pairs have direct
3:38trading pairs. smaller assets, you're
3:40gonna have to go in and out of stable
3:41coins if you want to buy and sell and
3:42then switch into other assets. For me,
3:44BTCUDC, which is right here. So, we have
3:46this trading pair. This is showing me
3:48the exchange rate between Bitcoin and
3:51USDC. So, Bitcoin and dollars. So, we
3:53have the exchange rate here. And this is
3:55plotted as a chart over time. And then
3:58on the right hand side, this is the
3:59order book. So, this is the current
4:01market for this trading pair. It's
4:03giving us what traders are actually
4:05paying right now for the asset. So this
4:07is essentially the price of the asset in
4:08the market and then on the right hand
4:10side we can go and enter orders and
4:11actually join these traders as well. The
4:13price chart of any asset just shows us
4:14the exchange rate over time. So on the y
4:16axis you have price and then time on the
4:18bottom here and that's it. Now if you're
4:21new to Binance you'll probably see it
4:23plotted as a line chart which is totally
4:25fine. It shows us the trend of the
4:26asset. So we're clearly in an uptrend
4:28right here right because the price is
4:30rising over time. So uptrends usually
4:32happen uh in waves right? So you have a
4:35wave up, then you have a pullback, you
4:37have another wave up, another pullback,
4:38another wave up, maybe another pullback,
4:40and another wave up. Right? So those
4:41uptrends obviously something to keep in
4:44mind if you're trading shorter term. If
4:45you're trading longer term, you're just
4:48going to be buying regularly, once a
4:49week, once a month, whatever for many
4:51years. And so the price chart is
4:53actually not that relevant over time.
4:55The longer you invest, the less relevant
4:57the price chart gets. If you're trading
4:59more actively, then of course you're
5:02looking to buy and sell faster and so
5:04you're much more concentrated on the
5:07trend of the asset, right? So if you're
5:09buying here and you want to sell within
5:116 months, you have to be sure that the
5:14trend will continue upwards. And there's
5:15a lot of uh research behind the scenes
5:17for knowing if that's going to happen,
5:19which we can't go through in this video.
5:21Um, but for sure it's more important if
5:22you're trading actively. What we want to
5:24do really is change this to a
5:26candlestick chart. And this is because
5:29candlesticks give us much more
5:30information about what we're trading.
5:32With a line chart, you just get plotted
5:34the price. With a candlestick chart, you
5:36get four bits of information. You get
5:38the open and the close. So that's let's
5:40say a week chart. We get Monday, Sunday.
5:43So Monday open, Sunday close. Now what
5:45can happen to the price during that uh
5:47time period is that may go up or it may
5:49go down. And so green candlesticks are
5:51when the price moves up. So we can see
5:53we opened here. The price moved up, we
5:56close. That's a green candlestick. Open,
5:58price moves up, close, green
6:00candlestick. This one, we opened, price
6:02went down, red candlestick because it
6:04closed below the open, so that's a red
6:06candlestick. You can also change the
6:08color scheme here. I know in some parts
6:09of the world, the color scheme is
6:11actually different. Uh western uh color
6:13scheme is green and red, but you can
6:15change that around if you want. Just
6:17gives us more information about what
6:18happens uh during these weeks. Now, if
6:20you want to change this time horizon as
6:22well, you can do. So you come up here,
6:23this dropown shows that you can change
6:26the time horizon here. So I'm going to
6:27go to a 4hour candlestick chart. Press
6:30right, right click and reset. These
6:32candlesticks now are 4hour time frames.
6:35That's better for short-term trading. So
6:37for example, in this uh time frame here,
6:39you can see we had a high, then the
6:41price moves down, we recover a little
6:43bit, but we have a lower high here. We
6:45move down, recover a little bit, we have
6:47a lower high. That's a downtrend, right?
6:49So, if you're trading much shorter term,
6:51you can use these uh lower time frame
6:54candlestick charts to maybe put in some
6:56trades. If you're trading longer term or
6:59investing really, then uh you can look
7:01at week charts um month charts even. And
7:04actually, if you're just investing and
7:06you've decided that Bitcoin is a great
7:07asset that you want to accumulate, then
7:09the price charts pretty irrelevant. If
7:11you've got a 10ear time horizon, the
7:12price charts are irrelevant. You just
7:13dollar cost average over, you know,
7:15weeks or months and uh it doesn't really
7:17matter what price you're getting in,
7:18right? just waiting for the growth over
7:19time. But candlestick charts give us
7:21much more granular information about
7:23what what's happening to the price over
7:25any specific time period. Now, we'll get
7:27on to entering some orders on the
7:28Binance trading system. So, right here
7:30we have the order book and this shows us
7:33buyers and sellers. So, buyers and
7:34sellers are in the market. They're
7:36showing us their orders and we can join
7:37this if we want as well or we can take
7:39other people's orders as well if we want
7:41to trade immediately. So, what this
7:44order book is saying is that this right
7:46here is the current actual price of
7:48Bitcoin. That's because a buyer and a
7:50seller met and traded. So, this mid
7:52price is going to update every single
7:55time a trade is actually uh executed.
7:57And you can see down here that we have
8:00market trades. It's showing us the exact
8:02price. It's showing us the amount of
8:03Bitcoin that was traded and the time
8:06stamp. And red indicates a sell and
8:09green indicates a buy. Again, you may be
8:11able to change that color scheme if you
8:13want. Um, but this is the mid price
8:15here. So, this is the actual price of
8:17Bitcoin or any other crypto asset is
8:18going to be the same. Now, down here,
8:20these are buyers and they're bidding for
8:24Bitcoin. So, they have USDC because
8:26that's the trading pair that we're
8:27trading. And they are showing us their
8:30orders and saying, I'm willing to buy
8:32Bitcoin, one unit of Bitcoin, which is
8:34one coin at this price. Now, we can
8:36trade any fraction of a Bitcoin and we
8:38can trade any fraction of their order as
8:39well. We don't have to worry about that.
8:40You can buy $10 worth. It's absolutely
8:42fine. We just quote the price in one
8:44unit, which is one coin. So, they are
8:47showing us that they are willing to buy
8:49Bitcoin at these prices. And the size is
8:52on the right hand side. That's the size
8:54of their their bids. Now, these guys are
8:56sellers and they have Bitcoin and
8:58they're w and they want to sell to USDC
9:01and they are saying these are the prices
9:02that we're willing to sell at. So, these
9:04are sellers up here and these are buyers
9:06down here. You can see that the prices
9:08are different to each other, right? So,
9:10these buyers are low. No one's traded
9:12with them yet. They've put their orders
9:14out into the market and they're saying,
9:16"I'm willing to buy at this price." But
9:18their prices are below the mid price.
9:20You can see the highest bid right here
9:22is 118. And these guys are cheaper, 117,
9:25116. So, these guys aren't going to
9:27trade because they're bidding, let's
9:30say, 114 and someone else is willing to
9:32bid 118, right? 11718.
9:36So, they're not going to buy any Bitcoin
9:38at their prices because someone else is
9:41out bidding them higher, right? So, a
9:43seller's going to come in and obviously
9:45take the best bid or the highest bid
9:46here. Same for sellers. This guy is
9:49going to get his Bitcoin sold because
9:51he's the lowest offer, right? He's the
9:53best offer. Um he he's the cheapest
9:55seller basically, right? So, if you want
9:57to go ahead and buy Bitcoin, you're
9:58going to take this one and not this one.
9:59However, as traders come in and buy and
10:02sell, you can see the actual price
10:03moves. So, if these guys are bidding
10:05here and they're actually not trading
10:07right now, a seller may come in, sell at
10:0995, sell at 94.96, sell at 94, sell at
10:1393.6. You may just hit all of those
10:15orders, right? And say, "Yep, I'm
10:17selling to all of those, right?" And so,
10:19you that's how the price moves. So, we
10:21can essentially trade just the same as
10:23them uh in a few different ways. Uh so,
10:26that's the order book and how it works.
10:28And this is the reference price that we
10:30can uh use to enter different orders
10:32that we may have. The first order type
10:34is known as a market order. This is
10:36where we actually don't choose the price
10:38that we trade at. We just choose the
10:40amount that we want to trade and we are
10:42going to take some of these guys orders.
10:44These guys are showing us their orders
10:46and what they want to trade at. So, we
10:48can say, "Sure, uh, I'm going to take
10:50your order and I'm going to exchange
10:52with you." This is like going to the
10:53airport where you have some cash and the
10:56exchange rate is given to you and you
10:58say, "Sure, I'll take that exchange
11:00rate. Here's my cash. Give me the other
11:01side." So, what we're going to do is
11:03press buy. We're going to press market
11:05order here. And notice that we cannot
11:07choose the price that we pay. We can
11:09choose the amount that we trade. So,
11:10let's say that I want to buy some amount
11:13of uh bitcoin. It is given to you quoted
11:16in the other side, which makes it easy,
11:17right? So, if I've got a dollar stable
11:19coin, I know that I want to buy $15 of
11:21Bitcoin. So, that's easy. You can choose
11:23a decimal of Bitcoin if you want as
11:25well. Uh that's going to be a lot more
11:27difficult to work out. So, it's easier
11:29just to say, I've got some USDC. this is
11:30how much I want to buy and it's going to
11:33work out how much Bitcoin that we trade
11:35when we press buy. We don't know exactly
11:38how much Bitcoin that we are going to
11:40get because we don't know the exact
11:42price that we're going to trade at. What
11:44we're saying when we enter this order is
11:47buy immediately $15 of Bitcoin. So, what
11:50we're going to do that the platform the
11:52the trading system will go over to the
11:54order book and it will take the best
11:56offer at the time that we press the
11:58button because this guy is telling us
12:01I'm selling Bitcoin for uh you know I'm
12:03selling my Bitcoin at 117226 or 117205
12:06as you can see here it changes around
12:09do you want to buy from me when we press
12:11buy we are going to take that away from
12:13them right so we're going to take their
12:14Bitcoin that they're selling but we
12:16don't know the exact price that we're
12:17going to trade at because the price
12:18moves around a lot So, what we're going
12:20to do is buy market order $15. Press buy
12:23BTC. Check everything. And that will
12:26trade immediately because it's a market
12:27order and we just trade at the best
12:29price possible. So, as we can see, we
12:31don't have any open orders. We if we go
12:33into trade history, you'll see that you
12:35actually just bought $15 of Bitcoin
12:36right there. It was immediate and the
12:38exact price that we traded at, we don't
12:40know, but we got the order done and
12:41we've bought the Bitcoin. If you want
12:43complete control over the price that you
12:44actually trade at, then you can use a
12:46limit order. So choose limit up at the
12:48top and you can see the price now is
12:51available for us to choose. So what this
12:53now lets us do is enter this order book
12:55at the specific price that we want to
12:57trade at. So we can now choose the price
13:00that we want to trade. Let's say that I
13:02want to put a limit order in at 118. So
13:05118,000 per coin. What I'm telling the
13:08system is trade immediately right now as
13:10long as the price is 118,000 or better.
13:13because I'm buying, we'll put an amount
13:16in here, right? So now it can work out
13:18the price, the amount that I want to
13:19spend. It knows exactly how much BTC
13:22that I can uh actually trade, right? So
13:24a fraction of a bitcoin because I'm
13:26telling the system buy immediately right
13:28now for me as long as the price is at or
13:30better than my limit. It's going to
13:32trade immediately, right? Because the
13:33price is underneath this. You can see
13:36117212.
13:37So if I press buy BTC right now, this
13:40limit order will essentially go in like
13:41a market order. It's going to trade
13:43immediately and we're going to buy this
13:45guy's Bitcoin right here because he's
13:47showing the sell tra sell side of the
13:49trade. That's fine if you want to do
13:52that, but it kind of defeats the object
13:53of a limit order. You may just use a
13:55market order there. What we can do with
13:56a limit order is choose a price below
13:59the current market price and hopefully
14:01wait for a seller to meet with us. So,
14:04we're going to choose 117 uh 200
14:08and we're going to choose an amount of
14:10Bitcoin to buy. So, we're going to spend
14:1218. And this is the fraction. What we're
14:14telling the system right now is I want
14:16to trade Bitcoin and I want to buy
14:18Bitcoin, but I'm not going to pay above
14:21117200 per coin. That's slightly below
14:24the current market price, right? So,
14:26what's going to happen if we enter this
14:27order is the system will put that order
14:31in for us and we will join the order
14:33book down here. So, I'm going to press
14:34buy BTC like this. You can see we've now
14:37got an open order. This order hasn't
14:39traded because my limit price is 117200
14:43and there are buyers willing to pay more
14:45than me. So, a seller is never going to
14:48sell to me at that price. However, as
14:50you can see, the price does move around
14:52and so if the price does move and come
14:54lower, there may be a seller that meets
14:56with me at this price and then I will
14:59trade. As you can see, the price is
15:01moving down a little bit. So, we may
15:02actually get this order done. So, we're
15:03going to have to wait until the price
15:05moves in and a seller meets us now. So,
15:08if they do, we can get this order
15:09traded. If not, it won't trade. I'm
15:11going to cancel the order out. So, you
15:13can go to the right hand side here and
15:14press the bin button. Cancel that. I
15:17cancelled the order and I didn't trade.
15:19I don't pay any trading fees for that.
15:21You only pay trading fees when you
15:23actually exchange the asset. Now, you
15:24can see the price has moved down. So, we
15:26would have actually got our order uh
15:27traded right there at the 200 price. So,
15:30we're below that now. So, we would have
15:31actually been hit and we would have
15:32traded then. But, I cancel the order
15:34before that. So, no trading fees are
15:36paid. You only pay trading fees when you
15:38exchange the assets. In order to prevent
15:39mistakes when you're trading, you can
15:41click this toggle right here, which is
15:43known as post only. You can see that.
15:47What this does is it only allows you to
15:50put an order in if it can post on the
15:54order book. What that means is the order
15:56must post first and it must sit there
15:59and wait to be traded. If I put an order
16:02type in which won't do that, so it will
16:05trade immediately, then the order will
16:06be cancelled. This prevents any fat
16:08finger trades or crazy price trades. So
16:11let's say that I put in a trade here
16:14and I uh make a mistake. Instead of
16:16putting 100,000, I put 200,000. If it's
16:18a limit order at 200,000, that means
16:21that I'm wanting to buy uh and my limit
16:24is 200,000. So I'd buy immediately,
16:27right? Well, that's a mistake. And so
16:29with postonly what that will do is
16:32prevent you uh from doing that and
16:34prevent the order going in because my
16:36order would trade immediately. Postonly
16:38is going to say nope you made a mistake.
16:40So if I press buy BTC here actually the
16:42price is so far away there is uh another
16:45warning saying your price is wrong
16:47right? So don't trade. So that's great
16:49as well. But you can put post only on if
16:51you'd never want to trade with a mistake
16:53here. It will only let me enter an order
16:55if my limit price is below the current
16:59price. That will then post onto the
17:01order book and everything will work okay
17:04there. If you want to sell out of your
17:06crypto assets, that's exactly the same
17:07thing. You can use a market or a limit
17:09order and you just want to press sell.
17:12Now, if you want to sell out of your
17:13asset, you have to be sure about which
17:15asset that you're selling into. So, if
17:17you want to sell your Bitcoin back into
17:19USDC or USDT, choose that trading pair.
17:22If you want to sell out and actually
17:24cash out of Binance, you may want to go
17:26and find the fiat currency trading pair
17:28in your region so that you sell the
17:29Bitcoin or the other asset into your
17:32fiat currency. Then you have the fiat
17:33there that you may be able to withdraw.
17:35So just choose the trading pair that you
17:36want to buy and sell into. But buying
17:38and selling is exactly the same. So you
17:40can use a market or a limit order, no
17:41problem like this. So let's uh choose an
17:44amount here. Now with a limit order on
17:47the sell side, we're now looking at
17:49above the current price to put in uh
17:51trades. You can of course sell with a
17:53market order. And if you sell with a
17:55market order, you're now taking this
17:56price below here. That's the best
17:58bidder. Right? So they're saying, "I
17:59want to buy your asset." Or if you want
18:00to place a higher price, you can do
18:03that. So let's say that I do now want to
18:05wait till 200,000 to actually go ahead
18:07and trade out. Uh I can choose an amount
18:10of uh Bitcoin that I want to sell.
18:13And it's going to put that order in. So,
18:15what I'm saying is at 200,000 if the
18:17price gets there, then sell $25 worth of
18:20Bitcoin and it's just going to put that
18:22order in and wait uh until the price
18:25gets there. So, let's sell BTC like this
18:28and that goes in. That's a sell order
18:29and that's not going to trade until
18:31200,000. That's an easy way if you've
18:33got Bitcoin and you want to sell at a
18:35certain price, you can just put that
18:36limit order in and just leave it there
18:38and wait and and see if the market gets
18:40to your price. I'm just going to cancel
18:42that out. And because I canceled it, I
18:44didn't trade it. no trading fees are
18:45paid. Another order type that you may
18:47use on Binance is known as a stop order.
18:49You may also see this referred to as a
18:50trigger order or a conditional order,
18:52and you can get to it via this drop
18:54down. A stop order lets us trade in a
18:57slightly different way to limit and
18:58market orders. Most of the time with
19:01stop orders, it's on the sell side. So,
19:03you've got the asset already and you're
19:05looking to put a sell order in. With a
19:08stop order though, what we can do is
19:10choose a price to sell at below the
19:12current price. This is known as a stop
19:14loss. And you may think, why would I
19:16want to sell below the current price?
19:18Well, let's say that you bought Bitcoin
19:19at lower prices around here. And so,
19:21you're sitting in a profit. And you're
19:24looking to sell and take some profits,
19:28but you don't really want to sell right
19:30now. You don't have to sell right now,
19:32but you really want to sell uh above
19:34100,000, right? So, you don't want to
19:37sell below 100K. And if the price gets
19:39to 100K again, you just want to sell
19:41there, right? you're like, "Okay, the
19:43price may be coming down again. I just
19:44want to sell at 100,000, but you're also
19:47happy to be in the asset right now in
19:49case it goes up." And then you don't
19:51want to have sold right now, right? So,
19:54you're happy to sell, but uh you can
19:56take some volatility to the downside and
19:57sell out here if you want. If not, you
19:59don't want to sell right now. If it goes
20:00up, then you obviously want to stay in
20:02the asset. We can't use a market order
20:04because we trade immediately. We also
20:06can't choose a limit order because if we
20:08told the system sell with a limit of
20:10100,000, it's going to sell immediately
20:12for us because the price is higher than
20:13that. So, how do we tell the system sell
20:16at 100,000 if it gets there? Well,
20:19that's where you use a stop order. So,
20:21what we're going to do is put in the
20:24stop price or the trigger price. This is
20:26an instruction to the system to say, I
20:29want to sell, but don't enter my order
20:33until my trigger price is met. So, we'll
20:36put that in 100,000.
20:38In this way, we can now control exactly
20:41how the system trades for us, where
20:44we're not going to sell now. However, if
20:47the trigger price of 100,000 is met, our
20:50sale order will go into the system and
20:52then we'll sell. So, you can choose how
20:53much you want to sell at that price. it
20:55won't trade right now because our
20:57trigger isn't met. Only if the price
20:59comes down to 100,000, our trigger is
21:01met and then our sell order goes in. In
21:04that way, we can sell below the current
21:06price if it gets there. Or if not, then
21:08we will keep our assets. Hopefully, they
21:11go higher and so we can make selling
21:13decisions at a higher price. So, with a
21:16trigger order, that lets us sell below
21:18the current price if it gets there. You
21:19can't do that with a limit or a market
21:21order. Now you can choose stop market or
21:24stop limit. With a stop market, what
21:26you're saying is at the trigger price,
21:28enter a market order to sell this amount
21:30of Bitcoin or any other asset. With a
21:32stop limit, what you're saying to the
21:35system is at my trigger price of 100K,
21:38enter a sell limit order for me. Now, if
21:41your if your stop order gets triggered,
21:43the price is going to be 100,000, right?
21:45Because that's where the trigger is. So,
21:48if you put in a limit price of
21:51150,000, your order will go into the
21:54system. The trigger price is met, your
21:55order goes in, but your limit price is
21:58now 150K. The price is at 100K, right?
22:01Because it just got triggered. So, you
22:02won't sell anything, but your order will
22:04be in the system, and it will wait for
22:06the price to then go up to your limit
22:07price again. What's the point of doing
22:10that, right? So really with a limit
22:12order, you'll probably be looking at uh
22:14some price around this 100K. If the
22:17price is moving down, then you'll want
22:18it around 100K, maybe a little bit
22:20below, but you may as well just trade a
22:22market order, right? It's going to be
22:23simpler. But you can put a limit order
22:25in as well if you want with your
22:26trigger. So stop market stop limit. It's
22:28the trigger that you enter your order
22:30at. This is mostly used on the sell
22:32side, having the asset first and selling
22:34lower because if you're uh selling at a
22:38higher price than the current market
22:40price, then you can just use a limit
22:42order, right? You can say sell limit
22:44200,000, it's not going to sell until it
22:46gets to 200,000. So, you don't need to
22:48use a stop order there. You can just use
22:50a limit order instead. Another way to
22:51sell out and take profits, hopefully if
22:53we have them, is to use a trailing stop.
22:55And this is mostly used on the sell side
22:57again. And it's an instruction to the
22:59system to say, I'm willing to sell right
23:02now. However, if the price moves up, I
23:06want to trail my limit price and my sell
23:08price up with the price. If the price
23:10moves down, don't move down and just
23:12sell out. So, this is a way of saying,
23:15I'm happy to sell here, but if the price
23:17moves up, then I'm going to take
23:19advantage of that as well. So, let's say
23:21you've got some Bitcoin and this is the
23:22current price of it. When entering a
23:25trailing stop, you have to give yourself
23:27a call back rate or a delta rate, and
23:30it's given in percent. So, let's use the
23:33example here of 5%. What you're telling
23:36the system is I'm willing to sell 5%
23:39lower than the current price right now.
23:41If the price just falls down 5%
23:44immediately, I I'll sell 5% lower.
23:46However, in bull markets, as the price
23:49ranges higher, you might actually get a
23:51better trade by using a trailing stop.
23:53Because what happens is as the price
23:55rises, your limit price for your sell
23:57order also goes up, but it keeps this 5%
24:01delta, this 5% difference. So my limit
24:04price is now higher than it was because
24:06the price moved up because I gave myself
24:085% breathing room. Price moved up and so
24:11my limit price moved up as well. As the
24:13price comes down 2%, my trading stop
24:16doesn't move. So the price move went
24:19down 10%. My trading stop doesn't move.
24:21Nothing's traded because it didn't fall
24:235%. Now we go up again. My trailing stop
24:26moves and keeps that 5% delta. So my
24:30limit price has moved up a couple of
24:31times now with the price. So that's
24:33great news. I get a higher price for my
24:34trade. Now the price does fall and it
24:37actually falls down 5%. Because my sale
24:39doesn't move. I then sell out. But
24:42because I use the trailing stop, my
24:44price or the trade is higher. This is
24:48great with Bitcoin bull markets because
24:50I'm sure you know the price can really
24:52move up aggressively. So when you reach
24:54a price that you're willing to sell at
24:56and you're within 5% of it, you can just
24:59say use a trailing stop. If I sell 5%
25:01lower, I'm still happy. If the price
25:03moves up a lot, I haven't missed out. So
25:05you can go and change uh choose the
25:07delta here. So you can choose 1 2 3 5%.
25:10Let's call it 5% here. And just put a
25:12market order in, right? So you don't
25:14choose the price, right? So just choose
25:16market. So, my trailing stop is 5%. At
25:195%, choose an amount of Bitcoin to sell.
25:22If the price falls immediately 5%, we're
25:24just going to sell there. If not, then
25:27we can just ride up and our limit price
25:30is going to or our, you know, sell order
25:31is going to ride up with it. That's a
25:33great way of selling out in bull markets
25:35where you reach a price that you're
25:37happy with, but you're not going to miss
25:39out much upside if the price moves up as
25:41well with your trading stop. I've got
25:42much more in-depth videos about trading
25:44on Binance and using the Binance
25:45platform. I'll leave a bunch of them
25:47down in the description and all of the
25:48trading and deposit bonuses on the
25:50exchanges I use will be linked down
25:51there as well. I'm James Money G.

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