Trading, the act of buying and selling stocks or any kind of asset, happens the most in the world of cryptocurrency currently. Founded in 2017, the largest exchange in the world of trading cryptocurrencies is Binance. Binance Charity’s goal is to advance the blockchain-enabled charity’s sustainable development. We will understand all about the OCO order on Binance in this article.
A new order was set in motion, the OCO Order on Binance, which also said “One Cancels the Other” order. In this article, we will explain what the OCO order on Binance is. Also how to place an OCO Order and more. Everything you need to know about an OCO order on Binance, you can find further in the article.
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What is an OCO Order on Binance?
The OCO order or the “One Cancels the Other” order, is when you, as a user, place two orders simultaneously on Binance. An OCO order is when two orders are in combination and use simultaneously; the limit order and a stop-limit order. But when you do so, the execution of only one is possible. Either the limit order or the stop-limit order.
A limit order is when you place an order with a very specific limit, based on what you want, in the order book. However, you can limit price execution or remove it when the market price reaches the price you set when placing the order. A combination of two factors – the limit order and stop trigger, is the stop-limit order. In this order, traders have the option to either set a minimum amount of profit or the maximum amount they are willing to lose on a trade. You can even cash out your Bitcoins with this trading platform Binance.
In simple terms, once one of the orders fills fully or partially, the other order or remaining one cancels automatically. This can also be done manually by you when you notice or decide on whether your trade goal is met. OCO orders on Binance are one of the most basic forms of trade automation in the trading world. The OCO order feature comes in very handy as you have the option of placing two orders simultaneously. This can help you minimize your losses and help you take profits.
How Are OCO Orders Used?
To place your OCO orders on Binance, you will have to follow the steps below:
Step 1: Log in to the Binance account you hold. Go to the interface – Basic Exchange and look for the trading area.
Step 2: Then, click on Stop-limit order. After clicking on the “stop-limit order,” you will notice a dropdown menu displayed on the screen.
Step 3: You will notice a couple of options on the dropdown box displayed on your screen. Click on the OCO option.
(Note – OCO orders on Binance can be placed as both buying or selling orders. To find more information, you need to click on the ” i “ mark for more information.)
Step 4: After you complete step 3, a brand new trading interface is visible on the screen. It is in this interface that you can set both your stop-limit and limit orders at the same time.
Step 5: In the Open Orders section of the interface, you will find the details of both your limit and stop-limit orders when you scroll down.
For example, if your prediction is right and the price rises above the number mentioned, the execution of your sell order will be done. This will lead your stop-limit order to be canceled automatically.
But, if your prediction ends up incorrect, and instead, the price drops, it will initiate the stop-limit order. This means your loss will minimize if the price happens to get even lower than before.
For example, if your stop price is 0.0025950 (trigger price) and your limit price is 0.025900 (which is also the trading price of your order), it will mean that the stop-limit set by you is going to trigger. This trigger will occur the moment the 0.0025950 limits reach your OCO order on Binance. The actual order price, usually set as the limit order, will be set at 0.0025900. Unfortunately, your limit order may not be complete if there’s a risk of the price dropping below 0.0025950 (the stop-limit order or trigger price).
How to place an OCO order on Binance?
To place an OCO order on Binance, you have to first log in to your Binance account and set your limit and stop-limit orders in the given boxes on the interface. Once you enter the numbers you wish, it creates the orders as a Limit-Maker and a Stop-Limit order.
What is the OCO order on Binance?
An OCO order stands for 'One Cancels the Other.' This happens after both your limit order and stop-limit order are set. When one order is executed, the other one is automatically canceled. This leaves you with nothing to sell.
Official profit maximization, what is it?
The official profit maximization is a trading application where the aim is to make the trading experience much easier for you, even if you have very little trading experience. You will have to put in all the information you want on the different kinds of trades you're looking at, and the official profit maximize app will find trades according to your market of preference.
Are there pros to an OCO order on Binance?
Yes, there are plenty of pros to placing an OCO order on Binance. You limit your risks and losses, and it helps you to lock in profits with every trade you make.
The OCO order or the “One Cancels the Other” order is a feature in Binance Exchange, where you can trade in a more secure way. In the OCO order, you can make two orders simultaneously – a limit order and stop-limit order. Through this feature, it is possible for you to maximize your profits and minimize your losses in the trade market.
When one order, either limit or stop-limit, reaches its position, the other one cancels automatically. You can also cancel it manually when you notice that one of the orders reaches the numbers you want on your trade. And the Official Profit Maximizer app will help you achieve the same! This type of order is useful as it helps you lock in your profits and limits risks.
However, one important point to note when you decide on making an OCO order on Binance is to make sure you understand the limit order and stop-limit order features completely. When you have complete knowledge about the two, it is easier to make decisions on your trade when you place an OCO order on Binance.