An OCO or “One Cancels the Other” order (one to cancel the other) allows you to place two orders at the same time. This order is a combination of two orders, a Limit order and a Stop – Limit order, but only one of the two orders can be executed.
In other words, as soon as one of the two orders is partially or fully executed, the other is automatically cancelled. Note that if one of the two orders is cancelled, the other is also cancelled.
When trading on the Binance Exchange, you can use OCO orders as a basic form of automating transactions. This feature gives you the option to place two limit orders at the same time, which can help you to maximize your profit and reduce your loss.
Instructions for placing OCO orders
Step 2: Select the currency pair you want to trade and then click “Buying” or “Sell” to go to the trading area. Example SFP/USDT currency pair.
Step 3: Select command OCO (When you select the command OCO then a message appears to explain this command for you to understand click “Agree” OK), then enter information (price, quantity). Check the information again, then press “Buying” or “Sell”.
Display OCO allows you to place one at the same time Limit command and a Stop-Limit command:
Stop – Limit order
- Stop: The price at which your limit-stop order will be triggered.
Limit: Actual price of your limit order after the stop order is triggered.
- Amount: The size of your order.
- Total: Total value of your order.
Step 4: After placing the OCO order, scroll down and you will see the order you placed in the “Pending Order”.
Eg: You just bought 1000 SFP at 1.2 USDT, and you believe the price will go up. So you use an OCO order to sell SFP, set a take profit at 2.5 USDT along with a Stop – Limit order at 1.15 USDT.
If your prediction is correct and the price rises to or above the 2.5 USDT level, your sell order will be executed and the Stop – Limit limit order will be automatically cancelled.
Conversely, if your prediction is wrong and the price falls below 0.0024950 BTC, your limit-stop order will be triggered. This has the potential to minimize your losses, in case the price falls further.
Notice in this example, Stop Price is 1.155 (trigger price) and Limit Price is 1.15 (trade price of your order). This means that your Stop – Limit order will be activated at the moment the price level of 1,155 is reached. But, the actual trading price of your order will be 1.15. In other words, if SFP/USDT falls to 1.155 or below, a sell Limit order at 1.15 will be placed.
The OCO feature is a simple yet powerful tool that allows you and other Binance users to trade in a more secure and flexible way. This particular order type can be useful for taking profits, limiting risk and even entering and exiting the market. However, it is important to have a clear understanding of Limit command and Stop – Limit orders before using the OCO command.