Trading can be attractive and exciting, but trading is a serious job and can lead to mental and financial collapse. Derivative trading comes with risks. Moreover, cryptocurrencies and other types of digital assets often have high price volatility.
Responsible trading
Responsible trading means controlling your trades and being accountable for your actions. Responsible trading also means acknowledging when trading activities may not be suitable for you. A responsible trader will not do anything beyond their means. In other words, never spend more than you can afford to lose.
Risk management
Risk management plays an important role in the success of every trader. Risk management helps you avoid excessive losses and protect your trading capital. On the Binance trading interface, we have set up risk management features, such as stop-loss orders, to help users manage risk in individual trades. Learn more about money and risk management in our blog post.
When traders experience consecutive losses, turning the situation around and cutting losses can be very difficult. In such situations, traders must know when to stop and avoid trading addiction. Sometimes, the best trading strategy is to not trade at all.
In order to encourage self-discipline and responsible trading, Binance has launched the Pause Time feature so that users can temporarily disable derivative trading activities and avoid trading addiction.
Even with this feature, traders must continue to self-implement responsible trading, which requires traders to have complete control over their trades and be accountable for their actions.
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