There are two types of stop orders on Binance Futures, namely Stop-Limit Order and Stop-Market Order.
What is a stop-limit order?
The easiest way to understand a stop-limit order is to break it down into stop price, and limit price. The stop price is simply the price that triggers the limit order, and the limit price is the price of the limit order that is triggered. This means that once your stop price has been reached, your limit order will be immediately placed on the order book.
Although the stop and limit prices can be the same, this is not a requirement. In fact, it would be safer for you to set the stop price (trigger price) a bit higher than the limit price for sell orders, or a bit lower than the limit price for buy orders. This increases the chances of your limit order getting filled after the stop price is reached.
How to place a stop-limit order?
What is a stop-market order?
Similarly to a stop-limit order, a stop-market order uses a stop price as a trigger. However, when the stop price is reached, it triggers a market order instead.
How to place a stop-market order?
The system will automatically reject orders that fail margin check or exceed position limit.