How to Set Take-Profit and Stop-Loss on Binance Futures: Mark Price vs. Last Price
Learn how to set TP/SL for Binance Futures. This guide explains the differences between Mark Price and Last Price trigger modes.
In futures trading, setting Take-Profit (TP) and Stop-Loss (SL) is not just a feature—it is the most critical discipline for survival. Before you open a position, ensure you have enabled futures trading on the Binance Official Website and have the Binance Official App ready for real-time monitoring (see the iOS Installation Guide).
Futures TP/SL vs. Spot TP/SL
While the basic concept is similar to spot trading, futures introduce several unique dimensions:
| Dimension | Futures Characteristic |
|---|---|
| Trigger Basis | Choice between Mark Price or Last Price |
| Order Types | TP/SL Market, TP/SL Limit |
| Position Binding | Can be tied specifically to an open position |
| Directional | Independent settings for Long and Short positions |
Trigger Basis: Mark Price vs. Last Price
Binance allows you to choose which price index triggers your orders:
Mark Price
This is a "fair price" calculated by Binance using an index of several spot exchanges plus the funding basis. Liquidation is determined by the Mark Price.
- Pros: Prevents accidental triggers caused by "stop-hunting" wicks or temporary exchange-specific spikes.
- Cons: It may differ slightly from the actual price you see in the order book.
Last Price
The most recent price at which a trade was executed on the Binance platform.
- Pros: Highly intuitive; it matches exactly what you see on the K-line chart.
- Cons: Rapid price wicks (spikes) can trigger your stop-loss prematurely before the price bounces back.
How to Choose
| Scenario | Recommended Trigger |
|---|---|
| Liquidation Protection (Stop-Loss) | Mark Price (Matches liquidation logic) |
| Precise Profit Targets | Last Price |
| Low-Liquidity Altcoins | Mark Price (Avoids wicks) |
| Short-term Scalping | Last Price |
| Overnight/Swing Trades | Mark Price (Protects against overnight volatility) |
Setup Process
On Web
- Go to your Positions panel at the bottom of the trading page.
- Locate the TP/SL button for your active position.
- In the pop-up, enter your Trigger Price, select the Trigger Basis, and choose the Order Type (Market or Limit).
- Set the quantity (100% is the default).
- Confirm.
On App
Tap the TP/SL icon on your active position card and follow the same steps.
Full vs. Partial TP/SL
By default, Binance applies TP/SL to the entire position. However, you can set partial targets: Example: You hold 1 BTC Long.
- Target A: Close 0.5 BTC at $65,000.
- Target B: Close 0.5 BTC at $70,000. This "laddering" approach allows for flexible profit-taking while staying in the trend.
Market vs. Limit TP/SL
| Type | Behavior |
|---|---|
| TP/SL Market | Once triggered, the order executes immediately at the market price. Guarantees execution. |
| TP/SL Limit | Once triggered, a limit order is placed at your specified price. May not execute if the market moves too fast. |
Pro Tip: Always use Market Stop-Loss. In extreme market crashes, a Limit Stop-Loss might be bypassed by the price, leading to a much larger loss or liquidation.
Key Considerations
1. Distance from Liquidation Price
Your stop-loss must be placed before your liquidation price. Avoid placing it too close (e.g., < 1%) to avoid being knocked out by normal market noise. A common rule is to place the SL at roughly half the distance of the liquidation price.
2. Immediate Triggers
If you set a trigger price that the market has already crossed, the order will execute immediately. Always check the "Current Mark/Last Price" displayed in the settings box before confirming.
Common Mistakes to Avoid
- Trading Without a Stop-Loss: This is the #1 reason for account wipeouts. Never open a position without an exit plan.
- Mismatched Trigger Basis: Using "Last Price" for stop-loss while the exchange uses "Mark Price" for liquidation. You might be liquidated before your stop-loss even triggers.
- Setting Stops Too Tight: Being repeatedly "wicked out" by normal volatility, losing money on fees and slippage each time.
- Moving Your Stop-Loss: Adjusting your SL further away as the price approaches it. This defeats the purpose of risk management.
Advanced Strategies
Trailing Stop
Binance supports "Trailing Stop" as a specific order type. The stop price moves dynamically with the market as it goes in your favor but stays fixed if the market reverses.
Multi-Layered Stops
You can stack multiple stop-losses for one position:
- 50% of the position with a -3% stop.
- 50% of the position with a -5% stop. This protects you from total exit during a minor shakeout.
FAQ
Q: Is the rest of my position still open after a partial TP? A: Yes, only the percentage you specified will be closed.
Q: Why was I liquidated when my stop-loss hadn't been hit? A: This usually happens when your SL is set to "Last Price" but the "Mark Price" hit the liquidation level first. Use Mark Price for stop-losses to prevent this.
Q: Are there extra fees for TP/SL? A: Standard trading fees apply. Market orders are charged the Taker fee, and Limit orders (if they execute) are charged the Maker fee.
Q: Can I have both TP and SL active at once? A: Yes, Binance supports OCO (One-Cancels-the-Other) logic for TP/SL groups.
Further Reading
The first thing you do after opening a futures position should be setting your stop-loss. If you don't have an exit price, you shouldn't have an entry price.