Copy Trading
Responsible Trading with Binance
Binance encourages our users to trade responsibly. Trading can be engaging and fun, but trading is a serious business and it can lead to financial and emotional distress. Trading derivatives carries risk, and furthermore, cryptocurrencies and other digital assets often have high levels of price volatility.
Responsible trading is about exercising control over your trades and taking accountability for your actions. Trading responsibly also means acknowledging when you may not be suited for trading. Responsible traders do not go beyond their means. In other words, you should never risk funds you cannot afford to lose.
At Binance, we have established several features and guidelines to help users trade responsibly and make informed trading decisions. Here are some tips and good practices that will help you be a more responsible trader:
Practicing Self-Discipline
In trading, self-discipline means telling yourself to avoid unhealthy excesses like compulsive trading or gambling. At Binance, we encourage users to practice self-discipline, especially when they feel pressured by losses or a losing streak.
Continuously Educating Yourself
Binance has continuously worked towards educating its users on every aspect of crypto trading, from the underlying technology of cryptocurrencies to the complexities of derivatives trading. Our educational content is freely available on Binance Academy, Binance Research, Binance Blog, and FAQ guides.
Protecting Your Capital
Risk management is crucial to every trader’s success. It helps you avoid outsized losses and protects your trading capital. On the Binance trading interface, we have established risk management features such as stop-loss orders to help users manage the risk in individual trades. Learn more about risk and money management in our blog post.
Anti-Addiction Notice
Binance has established several procedures to remind traders of impulsive trading behavior. For instance, when a trader experiences a losing streak or suffers a heavy loss, we continuously remind them of the risk involved in derivatives trading and encourage them to hold back on trading activities.
As a responsible trader, it is critical to keep yourself in check and ensure that you have procedures to avoid harmful excesses like compulsive trading or gambling.
Our system-generated notifications constantly remind users of the dangers of compulsive trading and the risk involved when trading more complicated products like derivatives.
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Cooling-Off Period Function
When traders face a losing streak, it may be challenging to turn the tide and stop the bleeding. In these situations, traders must know when to stop and avoid compulsive trading behaviors. Sometimes, the best trade is no trade at all.
To encourage self-discipline and responsible trading, Binance launched the Cooling-off Period function for users to temporarily disable derivative trading activities and abstain from compulsive trading behavior.
Even with this feature available, traders must continue to practice responsible trading independently, which calls for having complete control over their trades and taking responsibility for their actions.