One Cancels the Other (OCO) allows you to place two orders at the same time. It combines a limit order and a stop-limit order, but only one of them can be executed.
In other words, as long as one of the limit orders is partially or fully executed and the stop-profit and stop-loss orders are triggered, the other order will be automatically canceled. Please note that canceling one order will also cancel the other.
When trading on the Binance exchange, you can use 2-for-1 orders as a basic form of trading automation. This feature gives you the option to place two limit orders at the same time, helping to take profits and minimize potential losses.
On Binance, OCO orders can be placed as a pair of buy or sell orders. You can find more information about OCO orders by clicking on the exclamation point icon.
After selecting the "Choose one of two orders" option, a new trading interface will be loaded, as shown in the figure below. This interface allows you to set limit orders and stop-limit orders at the same time.
After placing a two-choice order, you can scroll down to view the details of both orders in the "Open Orders" section.
For example, let’s say you just bought 5BNB at 0.0026837 BTC because you believe the price is near a major support zone and may rise higher.In this case, you can use the 2-for-1 order feature to place a take-profit order at 0.0030 BTC and a stop-limit order at 0.0024900 BTC.
If your prediction is accurate and the price rises to 0.0030 BTC or higher, your sell order will be executed and the stop limit order will be automatically canceled.
On the other hand, if your prediction is wrong and the price drops to 0.0024950 BTC, your stop limit order will be triggered. This may reduce your losses in case the price falls further.
It should be noted that in this example, the stop price is 0.0024950 (trigger price) and the limit price is 0.0024900 (the transaction price of the order). This means that your stop limit order will trigger the moment the price reaches 0.0024950. The price of the triggered limit order is 0.0024900. In other words, if BNB/BTC falls to 0.0024950 or lower, the system will still place a limit order for you at a price of 0.0024900, but because the price is lower than 0.0024900, your order may not be executed.
The 2-for-1 order type is a simple-to-use yet powerful tool that allows you and other Binance users to trade in a safer and more flexible way. This particular type of order is very beneficial for locking in profits, limiting risk, and even for entering and exiting positions. But before using 2-for-1 orders, you should still have a good understanding of limit orders and stop-limit orders.The above is the detailed content of What is an OCO order?. For more information, please follow other related articles on the PHP Chinese website!