Stop loss percent: how far above entry the stop sits
Updated:
The stop loss percent sets how many percent up from the entry price the Snapback bot places the protective stop of a short. If the price reaches that level, the whole position is closed at the market. It is a percentage of price movement, not a percentage of your deposit or margin.
What it means in plain words
A short loses when the price rises. The stop-loss is the level at which the bot agrees to admit the mistake and get out so the loss does not grow further. This setting defines how far above the entry that level sits.
Why it exists
A pump can go much farther than expected. Without a stop, a short would suffer an unlimited loss all the way to liquidation. The stop caps the loss in advance. Read more about stops and targets in stop loss and take profit on Binance futures.
How it works in the code
The stop price is entry price x (1 + percentage / 100), rounded down to the price step, so the stop triggers no later than calculated. The order is a conditional STOP_MARKET that closes the whole position (closePosition), triggers on the mark price and is placed right after the entry fills, together with the take-profits. If the exchange refuses to accept the protection, the bot closes the position at market and the exit reason is recorded as "protection_failed".
Illustration of the mechanism only, not advice: entry 100, stop 20%. The stop sits at 120.
A separate leverage limit also applies. The bot will not open a trade if the chosen leverage exceeds the limit at which liquidation is still beyond the stop. The limit depends on the stop percentage and on the coin's maintenance margin rate. The wizard shows approximate limits calculated with a conservative fallback rate of 2.5%: 6x for a 10% stop, 4x for 15%, 3x for 20%, 3x for 25% and 2x for 30%. For a real coin the limit depends on its maintenance margin rate, so it may differ.
Allowed values and defaults
Only 10, 15, 20, 25 or 30. The code has no default. The form starts at 20.
What happens if it is wider or tighter
- Wider stop: the trade gets more room and is knocked out by a random spike less often, but the loss when it triggers is bigger and the allowed leverage is lower.
- Tighter stop: a smaller loss when triggered and higher allowed leverage, but the stop triggers more often on ordinary wiggles.
How it connects to other settings
- Leverage: its ceiling depends on the stop.
- Entry size: together with leverage and the stop it determines the loss in dollars.
- Breakeven: moves this stop to the entry after a take-profit.
Common mistakes
- Reading "-20%" as a 20% loss of the deposit. It is a price move, and the loss depends on the position size.
- Forgetting that a stop can fill worse than the calculated price in a sharp move.
- Widening the stop without lowering the leverage: the wizard limits the leverage for you.
Where to find it in the bot wizard
The "New bot" or "Edit" form, the "Risk" block (caption "stop-loss is the price moving against us; leverage is capped so that liquidation sits beyond the stop"). A row of cards "-10%", "-15%", "-20%", "-25%", "-30%", each labeled "max leverage Nx".
Frequently asked questions
What does a -20% stop-loss mean in the bot settings?
It is a 20% price move up against the short, measured from the entry price. That is where the stop sits, not 20% of your deposit or margin.
Which stop-loss values are available?
Only 10, 15, 20, 25 and 30 percent.
Why does the maximum leverage depend on the stop-loss?
Liquidation must come beyond the stop, otherwise the exchange would close the position before the stop triggers. So a wider stop allows less leverage.
For a short, is the stop above or below the entry?
Above. A short loses when the price rises, so the stop sits over the entry price.