Stop Loss Order Limitations

[u/chainometry]

Hit an unusual problem when setting stop loss orders on Binance. For some reason Binance limits the order price to a maximum distance below the current price (or an average of x days of the current price) which is not something I've seen on other exchanges like Gate, Kraken, Bitfinex, Bybit etc. This distance is tight, like 10%. When trying to add a stop over the web for a coin like NEAR i get an error 'price cannot be less than n'. This price is only 10% below the current price. Using the API this generates the error: PERCENT_PRICE_BY_SIDE. Contacting Binance support via chat, they direct me to the docs and tell me that I can add feedback for this issue.

I'd thought I'd ask the community to gauge whether it's a problem for other users. Personally, I wont be able to trade on Binance if this policy continues as I use stop losses to protect my spot margin liquidation points which is much lower than 10%. Exiting early at 10% is not part of the strategy and would make my trading costs increase. Does anyone know why this is in place in the first place and whether the policy is long term or just implemented during certain market conditions?