Binance, the largest cryptocurrency exchange in the world, with millions of global users and a daily volume exceeding billions of dollars, is often praised for its innovation and accessibility. However, in a market as volatile as that of crypto assets, where drops of 20% or more in minutes are not uncommon, a glaring failure persists: the absence of stop loss as a default and automatic feature for all users. Instead of prioritizing basic protection against catastrophic losses, the platform forces traders to manually configure complex conditional orders, like stop-limit, which frequently fail at critical moments. This omission is not just a technical inconvenience – it is a negligence that exposes inexperienced users to unnecessary risks, perpetuating a cycle of forced liquidations and distrust. In this article, we will criticize this approach, highlighting evidence of recurring failures and proposing that Binance adopt more robust standards to safeguard its community.
What Is Stop Loss and Why Should It Be Standard?
The stop loss is an automatic order that sells (or closes) a position when the price hits a predefined loss level, limiting damage in scenarios of extreme volatility. In traditional exchanges like the NYSE or forex platforms, it is a pillar of risk management, activated by default for new positions. At Binance, however, there is no such automation: users must manually select "Stop-Limit" or "OCO" (One-Cancels-the-Other) at the time of entry, setting a trigger price and a limit price. This requires advanced knowledge and constant attention, which many beginners – attracted by Binance's user-friendly interface – simply do not possess.
The central criticism is that by not making stop loss mandatory or pre-configured (with customization options), Binance prioritizes superficial simplicity over real security. In an ecosystem where 70% of retail traders lose money, according to studies from the industry itself, this failure is irresponsible. Novice users, who represent the majority of the exchange's base, end up exposed to "price gaps" – when the market drops so quickly that the order does not execute, resulting in total losses. As reported in forums like Reddit, cases of "ghost" stop losses are endemic, with users losing thousands of dollars because the system did not account for insufficient liquidity.
Recurring Failures: Evidence of a Defective System
The recent market volatility, with sharp drops in assets like Bitcoin and altcoins on October 10-12, 2025, brutally exposed these deficiencies. Thousands of users reported that manually configured stop losses did not trigger, even as prices fell below the trigger. On X (formerly Twitter), recent posts echo old frustrations: "Stop loss has never worked for many people. They made them inactive," wrote one user, echoing complaints from 2021 and 2023.34fc3d Another, on October 11, stated: "People had set stop losses and limit orders on Binance that did not execute. This was another major failure of the centralized player Binance."0e48db
These incidents are not isolated. In 2021, during a Bitcoin drop, a trader lost $1,800 despite a stop loss set to cut losses, blaming "slow triggers" and market maker manipulation.71d03d In 2023, another user was "stopped early" on a short position of DUSK/USDT, with the stop loss triggering at 0.27225 instead of 0.27256, resulting in an early exit from a profitable trade.99d822 On Reddit, threads like "Truth about stop loss" warn: "Stop loss does not always work, and you cannot rely on it," citing "slippage" – discrepancies between market price and execution due to low liquidity.41a2dd
Binance's official documentation admits limitations: stop-limit orders may not fill if the limit price is not reached, especially in illiquid markets.27d6bf However, the exchange fails to mitigate this with automation. Instead of a simple stop-market (which executes at market price when triggered), Binance forces the stop-limit, which is more prone to failures. This is particularly harmful in futures with high leverage (up to 125x), where a small fluctuation can liquidate entire accounts. As a developer on GitHub created a trailing stop loss bot to circumvent this, highlighting the need for external solutions.37470c
Impact on Users: Financial Losses and Distrust
The human cost is alarming. During the crash in October 2025, Binance announced a $400 million fund for "recovery and rebuilding trust," including $300 million for liquidated users.c5c4de But this is a Band-Aid: users like one who lost $70,000 report that "stop losses did not work" and the app froze, preventing manual closures.14cb6e Another: "I was liquidated without the position hitting the stop loss. I haven't used Binance since that day."2342f0
This negligence particularly affects retail traders in emerging countries, where Binance is a gateway to crypto. In 2019, a user lost a position in ONE because the stop limit "was never triggered" during a drop.45e18d In the long run, this erodes trust: posts on X question whether the exchange is "a legitimate operation or not," with accusations of manipulation to benefit market makers.f0b92a
Comparatively, competitors like Bybit or OKX offer more intuitive and reliable stop loss, with native trailing stop options. Binance, with its market dominance, has an ethical duty to raise the standard.
Why Doesn't Binance Change? Questionable Priorities
The answer seems obvious: volume and fees. Manual orders generate more trades (and commissions), while automation reduces premature liquidations. Critics on X accuse the exchange of "calculated manipulation," as in 2025, when changes in leverage limits forced cascading closures.be5666 In 2023, market makers pulled liquidity from altcoins on Binance, causing "death by bell" for these assets.4f7933 The absence of a standard stop loss benefits those who profit from extreme volatility – not the users.
Moreover, Binance's mobile-optimized interface buries advanced options in menus, discouraging settings. A 2019 post on X summarizes: "Binance is not adequately designed for traders to protect themselves," citing lag and overload in high volatility.82b5fd
Solutions and Recommendations: Time to Act
Binance should implement stop loss as standard: automatically activated for new positions, with suggested levels based on historical volatility (e.g., 5-10% below the entry). Options like stop-market and trailing stop should be accessible with one click, with educational alerts for newcomers. Additionally, full transparency regarding slippage and automatic compensations for technical failures.
Meanwhile, users: use testnet to practice, prefer spot over high leverage, and diversify exchanges. Tools like bots on GitHub can help, but do not replace the platform's responsibility.f1a614
Conclusion: Protection Is Not Optional
Binance's refusal to make stop loss standard reflects a "casino" mentality, where risk is transferred to the user. In a market that is already predatory, the largest exchange should lead with ethics, not exploit vulnerabilities. Users deserve more than apologies and emergency funds – they deserve tools that prevent disasters. Binance, listen to the cries on Reddit and X: make protection real, not a treasure hunt. The future of crypto depends on trust, not liquidations.