The content is very basic, but very detailed and useful for novices.

First let’s talk about buying

Newbies need to be familiar with the operation! Take Binance as an example!

①Limit order

The meaning of a limit order is: buy at a limited price. For example, the current currency price is 1 US dollar, and I want to buy at 0.8 US dollars. Then use the limit order operation at this time, place a pending order of 0.8 US dollars, and enter the buy Quantity, when the currency price reaches 0.8 US dollars, the system will automatically place an order for buying operation!

②Market order

The meaning of a market order is to perform an immediate buying operation at the current real-time market price. Because there are always fluctuations in the market, there may be a little difference. The spread will fluctuate depending on the amount you buy and the depth of the currency, which may be large or small!

Let’s talk about selling

How to sell after completing the buying operation (how to set stop-profit and stop-loss). The selling options include:

① A market order is to sell immediately at the current market price.

②Limit price order, for example, if I bought it at 1 US dollar, I want to sell 50% of the coins in my hand at 1.1 US dollars, and if I want to sell the remaining 50% at 1.2 US dollars, then I would use a limit price order. But a limit order can only choose one direction. For example, if you set a stop-profit direction in one direction, you cannot set a stop-loss direction at the same time!

③ Take profit and stop loss, in the selling option, are actually similar to limit orders. They can only be used for one-way operations. If you set a take profit, you cannot set a stop loss at the same time. If you set a stop loss, you cannot set a take profit at the same time because it occupies your position. (Some platforms are exceptions) Contracts can generally place orders in both directions. Spot stock is only available in one direction! It is only divided into two options: trigger price and order price. Just understand this.

④ OCO This is the focus of today’s discussion, and it is also the most commonly used one. This order mode combines a limit order + a commissioned stop-profit and stop-loss order. You can set take profit + stop loss at the same time.

1. A limit order can set a take-profit price. (For example, if I buy at $1 and want to sell at $2, then the limit price will be $2)

2. There will be a trigger price below. We can use the commission price to place a stop-loss order at the same time (the trigger price means, for example, if I buy at $1 and want to stop the loss at $0.8, then the trigger price must be placed at 0.8 The upward price of the U.S. dollar, such as: 0.83 or 0.82, can be used. The distance can be appropriately widened to prevent extreme market conditions from being triggered) (For the commission price, fill in the price you want to stop loss, such as: 0.8)

Finally, fill in the amount you want to take profit or stop loss.

If you want to take profit in batches, you can place several orders at the same time, fill in the take profit in batches, and the stop loss price can be the same.

The principle of this mechanism is that when the price drops to 0.83 and triggers the trigger price of your pending order, the order will be automatically placed to sell at your commission price of 0.8, triggering the stop loss mechanism.

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