Slippage is a common term in trading that refers to the difference between a trade’s expected or requested price and the actual price at which it gets executed. In most cases, this slip or slippage in price can cause you losses, so BingX introduced the Guaranteed Stop Loss feature to abate this issue. This revolutionary tool was designed to safeguard and allow you to preset a specific price level at which your positions must be executed, preventing any slippage.
The significance of this tool cannot be overstated, and in this article, we’ll explore further how it empowers you to mitigate risks and enhance your trading strategies.
No More Slippages: Understanding BingX Guaranteed Stop Loss
The introduction of the Guaranteed Stop Loss feature by BingX has profoundly impacted the overall trading landscape by equipping traders with a powerful tool to manage risk effectively. This has also instilled greater confidence among traders, fostering a more secure and controlled trading environment.
The BingX Guaranteed Stop Loss is an exclusive BingX feature that enables you to set a specific price level at which your positions will be executed.
This differs from traditional stop-loss orders as it provides a greater level of certainty and control over trade execution. It ensures that your positions are closed at your desired price, regardless of market volatility.
The benefits of using BingX Guaranteed Stop Loss cannot be overemphasized. It includes enhanced risk management capabilities, reduced exposure to unexpected price movements, and increased confidence in executing trades.
By leveraging this feature, you can effectively manage your risks, optimize your trades, and navigate the dynamic nature of the cryptocurrency market with greater precision and peace of mind.
How to Use BingX Guaranteed Stop Loss
To use the Guaranteed SL feature, do the following;
- First, log into the account,
- Then click on the “Futures” option on the app’s bottom bar. This will take you to the Perpetual Futures Trading page.
- After setting the desired value and amount, check the TP/SL option located below. Click on “Advanced” and set your desired trigger price on the take profit/stop loss page.
- To enable the Guaranteed SL feature, simply check the “Guaranteed SL” option and click “OK”.
It is important to note that Bingx does not charge any upfront fees for this feature. Instead, a certain fee based on the trading volume will only be charged when the feature is triggered.
Once you’ve set the desired value and amount, select “Open Long” or “Open Short” based on your trading strategy. The Guaranteed SL feature will then take effect and ensure your position is always closed at the preset price, regardless of market volatility.
Case Studies and Scenarios
In practice, this feature can be effectively utilized in various scenarios, such as during periods of heightened market volatility, major news announcements, or when leaving positions unattended for extended periods.
To better understand the advantages of Guaranteed SL, let’s consider the case of three traders who decide to go long on one Bitcoin when the market price is 44,000 USD. However, a flash crash causes the market price to drop to 40,000 USD. Each trader adopts a different risk management strategy, resulting in different outcomes for the same trade.
Trader A with SL Market Order
Trader A used the SL Market order, which is a type of Market order that ensures the order is executed as quickly as possible, but it does not guarantee the filled price. Therefore, in the case of this sharp rise and fall in the market, Trader A’s order is eventually executed at the market price of 40,000 USD.
Trader B: SL Limit Order
Trader B chooses the SL limit order which is a stop loss set using a limit order. In the event of sharp market fluctuations where the market price quickly moves beyond the predetermined price, it may result in the incomplete execution of the placed order.
Trader C: BingX Guaranteed SL
Trader C chooses the Guaranteed SL feature, which ensures that the position is always closed at the preset price. Therefore, Trader C’s order with SL at 42,000 USD will be executed at precisely that amount regardless of market volatility.
Implementing BingX’s Guaranteed Stop Loss significantly influences trading outcomes by giving you greater control over risk management. It also helps you limit potential losses due to market volatility, resulting in more consistent and predictable trading results for users on the platform.
Risk Management Strategies with BingX Guaranteed Stop Loss
Incorporating BingX’s Guaranteed Stop Loss into your wholesome risk management plan involves allocating stop-loss levels to match your risk tolerance and overall trading objectives. You can leverage this feature across various trading styles and asset classes, adapting stop-loss levels to suit the specific characteristics of each market.
Some best trading practices include regularly reviewing and adjusting stop loss levels, diversifying the feature across different asset classes, and integrating it into well-defined trading strategies to optimize risk management and trading performance.
The Guaranteed Stop Loss feature is pivotal in mitigating slippage, offering traders a reliable mechanism to execute trades at predetermined prices. This minimizes the impact of slippage and instills a sense of control and predictability in trading activities.
Today, more traders are encouraged to actively explore and leverage this feature to elevate their trading experiences, effectively managing risk and fostering greater confidence in their trading strategies.
The Future of Trading Innovations
In the crypto trading industry, there are growing concerns about developing and integrating advanced risk management tools within trading platforms. This interest is partly heightened due to the extended period traders spend on such platforms for trading.
It is also due to an awareness of continuing to mitigate risk and preserve capital in volatile markets. This is why leading crypto exchanges like BingX integrated the exclusive BingX Guaranteed Stop Loss feature and will continue innovating to provide a robust platform for traders.
Potential futuristic advancements for trading may involve the integration of artificial intelligence and machine learning algorithms to enhance its precision and adaptability to market conditions.
Disclaimer: BingX does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. BingX is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.
