Ethereum: Using Binance Futures Trailing Stop Order with Python

As of my last update in April 2023, Ethereum futures trading on Binance has introduced a feature that allows users to place trailing stop orders. A trailing stop order is a type of stop-loss order that automatically adjusts the order’s price level based on its performance relative to its target. This can be particularly useful for traders who aim to limit their losses or lock in profits.

In this article, we’ll walk through an example of how to place a Binance futures trailing stop order using Python.

Prerequisites

Before diving into the code and explanation, ensure that you have:

• A Binance API account: You need to create an account on Binance and obtain a Client ID and Secret. This is necessary for authenticating your API requests.

• The requests library for Python

  

  : You’ll use this library to send HTTP requests to the Binance API.

• The forex_python library (optional but recommended): While not strictly necessary, forex_python provides a simple and intuitive way of working with financial data, including APIs.

Code Example

Here’s an example code snippet that demonstrates how to place a trailing stop order on Ethereum futures:

import requests



Replace these placeholders with your actual values:

symbol = "ETHUSDT"  
Ethereum USDT (e.g., ETH/USDT)

client_id: int = 0x12345678

client_secret: str = ""


def get_order_symbol(symbol):

    return f"{symbol}_USD"


def place_trailing_stop_order(order_type, symbol, stop_loss_price, trailing_stop_price):

    """Place a Binance futures trailing stop order.


    Args:

        order_type (str): Type of order. Can be either 'limit' or 'stop'.

        symbol (str): Symbol of the contract.

        stop_loss_price (float): The price at which to trigger a stop-loss sale.

        trailing_stop_price (float): The price below which to lock in profit.


    Returns:

        dict: Order details if successful, None otherwise.

    """

    base_url = "


    
Create the order request body

    data = {

        "type": order_type,

        "side": "buy",  
Or sell

        "limit_price": stop_loss_price,

        "stop_price": trailing_stop_price,

        "symbol": get_order_symbol(symbol),

        "leverage": 1,  
Use default leverage if not specified

    }


    try:

        response = requests.post(

            f"{base_url}?symbol={symbol}&type=order",

            json=data,

            headers={

                "X-MBX-APIKEY": client_id,

                "X-MBX-TS": int(client_secret),

            },

        )

        response.raise_for_status()  
Raise an exception for HTTP errors


        return response.json()

    except requests.exceptions.RequestException as e:

        print(f"Request failed: {e}")

        return None

Example Usage

Let’s place a trailing stop order on Ethereum USDT (ETH/USDT):

stop_loss_price = 10000.0  
$10,000 stop-loss price

trailing_stop_price = 2000.0  
$2,000 profit lock-in price


order_details = place_trailing_stop_order(

    "limit", "ETHUSDT", stop_loss_price, trailing_stop_price

)

if order_details:

    print("Trailing stop order placed successfully!")

else:

    print("Failed to place trailing stop order.")

Important Considerations

• Risk Management: Trading with a trailing stop order requires careful risk management to avoid losses due to price movements.

• Leverage: Be cautious when using leverage (e.g., 100:1) to manage your risks and profits.

• Order History: Regularly review your order history to ensure that the trailing stop order is working as intended.

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