What Is a Stop Market Order?

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Binance’s stop market order is designed to function similarly to a stop limit order by incorporating slippage tolerance. This feature sets a limit on the acceptable price range once the stop price is triggered, helping users prevent unintended trades due to sudden or unfavorable price fluctuations. By using this mechanism, Binance provides users with greater control over execution prices, minimizing the risk of orders being filled at excessively adverse prices and offering a safer, more precise way to manage stop orders.

1. What is the mechanism behind a stop market order?

When placing a stop market order, users need to set a slippage tolerance, which defines the maximum percentage difference they are willing to accept between the execution price and their target price. This is managed in the background by a stop limit order. After the order is triggered, it is submitted with the specified slippage tolerance and can be filled either completely or partially. Any unfilled portion will remain open as a limit maker order.

2. How to place a stop-market order?

You can go to [Trade] - [Spot], and select [Stop Market] from the order type drop down menu. Enter your preferred slippage tolerance value (which can range from 0.1% - 5%). Once your stop market order is placed, you can find its details in the “Open Orders” tab on the trading page.

3. How can I see the stop market order(s) placed on the candlestick chart?

1. To display the stop market order(s) placed on the candlestick chart, go to [Trade] - [Spot], and tap the [Candlestick Chart] icon.

2. Tap the [Chart Settings] - [Stop Limit] . Since stop market orders with slippage tolerance are handled in the background as stop limit orders, they will be listed under the Stop Limit section.

Stop market orders can also be placed using the API. 

Please note: 

• The slippage tolerance feature is not supported for API orders, so these will be executed as market orders. Due to rapid market fluctuations, slippage may occur, causing the executed price to be higher or lower than the last traded price you saw.
• For stop market orders, the “orderType” field in the exchangeInfo endpoint will display “STOP_LOSS” and “TAKE_PROFIT.”

For further details, please refer to the Binance Public WebSocket API documentation.

• When you place a stop loss market order or a take profit market order, the calculation is based solely on the last price of the trading pair. However, during execution, the order fulfillment will depend on the quantities and specific prices available in the order book. Consequently, if the order utilizes the entire available balance in the account, it may be canceled if the required balance for execution exceeds the initially calculated balance.

To learn more about Binance spot trading, visit the Spot Trading FAQs page.