What does OCO mean in cryptocurrency? How to place an OCO order? OCO orders are conditional orders placed by traders to help automate trade management and limit potential losses. When a trader places an OCO order, two orders are created at the same time: one to set a stop-loss order and another to set a take-profit order. If one of the orders (stop loss or profit order) is executed, the other order will be automatically canceled. How to use the OCO order function? Is there anything I need to pay attention to when using the OCO order function? Let’s take a look below!
In cryptocurrency trading, OCO stands for "One Cancels Another".
OCO orders are conditional orders placed by traders to help automate trade management and limit potential losses.
When a trader places an OCO order, two orders are created at the same time: one to set a stop loss order and another to set a profit order.
If one of the orders (stop loss order or profit order) is executed, the other order will be automatically canceled.
This helps traders manage risk by taking profits or limiting losses without actively monitoring their positions.
OCO orders are a common feature on many cryptocurrency trading platforms.
You currently hold 10 Link coins, your buying price is 5 yuan, and the current price is 6.5 yuan. You kind of want to sell it, but you are afraid that it will rise to 7.5 yuan; you want to continue to hold it, but you are afraid that it will fall back to 5 yuan. At this time, you are wondering, is there an order method? If Link rises to 7.5 first, sell it, but if it falls to 6 yuan, you will also sell it. In this way, you will still have a profit of at least 1 yuan, and you will not lose. . This is an OCO sell order, which sets a minimum price while chasing highs.
Binance OCO sell order
OCO buy order is the same, if it falls to a price You just buy it (ideally), but if it keeps going up you can get it at a relatively low price.
For example: You want to buy 10 LINK, the current price is 7 yuan, you want to buy it if it falls to 6 yuan, but you are afraid that it will not fall but will rise to 10 yuan in one go. At this time you can set up an OCO buy order.
To place an OCO order, you need to Follow these steps:
1. Log in to your favorite crypto trading platform or exchange and navigate to the trading interface.
2. Select the cryptocurrency you want to trade and indicate whether you want to buy or sell.
3. Find the "Order Type" or "Advanced Order" option and select "OCO Order".
4. Enter the details of your OCO order such as entry price, stop loss level, take profit level and the quantity you want to trade.
5. Check the order details to make sure they are correct and complete, then click "Submit" to place the order
For example
After logging into your Binance account, go to the basic trading interface and find the trading area shown in the image below. Click "Stop Limit Order" to open the drop-down menu and select "OCO".
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 mark icon.
After selecting the "Choose One Order" option, a new trading interface will be loaded, as shown in the picture below. This interface allows you to set limit orders and stop-limit orders at the same time.
After placing a pick-one 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 Loss 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 drops beyond 0.0024900, your order may not be executed.
A trader is bullish on BTC and wants to buy BTC. He can use the OCO order to set a limit buy order below the market price and a stop-loss buy order above the market price.
For example: The current market price of BTC is 10,000 USDT, and a trader wants to buy 20 Bitcoins. The trader thinks that 9,800 is a good buying price. If the price rises to 11,000, the highest buying price that can be accepted is 11,100. Then the transaction You can set it as follows.
The limit price is 9800 [Take profit and stop loss] The trigger price is 11000 [Take profit and stop loss] The limit price is 11100 Quantity 20
If the price drops to 9800, the limit order of 9800 will be triggered, and all trader orders will be If the transaction is completed or partially completed, the stop loss order will be automatically cancelled.
If the price rises to 11,000, a stop-loss order will be triggered to buy 20 Bitcoins at the commission price of 11,100. The trader’s order will be fully or partially filled, and the limit buy order of 9,800 will be cancelled.
A trader is bearish on BTC and wants to sell BTC. He can use the OCO order to set a sell limit order above the market price and a sell stop order below the market price.
For example: The current market price of BTC is 10,000 USDT, and a trader wants to sell 20 Bitcoins. The trader thinks that 11,100 is a good selling price. If the price drops to 9,850, the minimum selling price that can be accepted is 9,800. Then Traders can set it up as follows.
The limit price is 11100 [Take profit and stop loss] The trigger price is 9850 [Take profit and stop loss] The limit price is 9800 Quantity 20
If the price rises to 11100, the limit order of 11100 will be triggered, and all trader orders will be If the transaction is completed or partially completed, the stop loss order will be automatically cancelled.
If the price drops to 9850, a stop-loss order will be triggered to sell 20 Bitcoins at the commission price of 9800. The trader's order will be fully or partially filled, and the limit sell order of 11100 will be cancelled.
OCO order is a selective entrustment order, which refers to combining a stop loss order and a limit order into an OCO order to issue an order. When one of the orders is completed or partially completed, the other order is automatically canceled. OCO orders can strive for a better transaction price while ensuring that the purchase/sale is completed.
Limit Price:: Limit price, when the price reaches the Limit Price, all or part of the transaction will be completed according to the Limit Price (determined according to the number of counterparty orders)
Stop-Limit: Stop loss trigger price, when the market When the price reaches Stop-Limit, a limit order will be generated based on the Limit price.
Sell order: Limit price>Current market price>Stop loss trigger price (stop limit)
Buy order: Limit price *For faster speed For transactions, the limit price is slightly higher or lower than the trigger price based on the buying and selling advice.
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