Note: Before reading further, we strongly recommend that you first read our guide on limit orders and stop-limit orders.
One Cancels the Other (OCO) allows you to place two orders at the same time. It combines a limit order with a stop-limit order, but only one of them can be executed.
In other words, as soon as one of the orders is partially or fully filled, the other order will be automatically cancelled. Please note that manually canceling one order will also cancel the other order.
When trading on Binance, you can use OCO orders as a basic form of trading automation. This feature gives you the option to place two limit orders at the same time, which can help to take profits and minimize potential losses.
How to use OCO orders?
After logging into your Binance account, go to the Basic Trading Interface and find the trading area shown in the picture below. Click on “Stop Limit Order”, open the drop-down menu, and select “OCO”.
On Binance, OCO orders can be placed as a pair of buy or sell orders. Click the “i” icon to view the details of the OCO order.
After selecting the "OCO" option, a new trading interface will load, as shown below. This interface allows you to set both limit orders and stop-limit orders.
Limit Order
Price: The price of your limit order. This order will appear in the order book.
Stop Limit Order
Stop Loss: The price at which your limit stop order is triggered (e.g. 0.0024950 BTC). Limit Price: The actual price of your limit order after the stop loss is triggered (e.g. 0.0024900 BTC)
Quantity: The size of the order (e.g. 5 Binance Coin (BNB)).
Total: The total value of the order.
After placing the OCO order, you can scroll down and view the details of both orders in the “Current Orders” section.
For example, let’s say you just bought 5 BNB at 0.0026837 BTC because you believe the price is approaching a major support area and may rise.
In this case, you can use the OCO feature and place a take profit order at 0.0030 BTC and a stop limit order at 0.0024900 BTC.
If your prediction is correct and the price rises to 0.0030 BTC or higher, your sell order will be executed and the stop limit order will be automatically cancelled.
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 could reduce your losses in case the price drops further.
It is important to note in this example that the stop price is 0.0024950 (the trigger price) and the limit price is 0.0024900 (the transaction price of the order). In other words, the stop limit order will be triggered the moment the price reaches 0.0024950. But the actual order price as a limit order is 0.0024900. In other words, if BNB/BTC falls to 0.0024950 or lower, a limit sell order will be placed at 0.0024900. However, if the price falls below 0.0024950, the limit order will face the risk of not being executed.
The OCO order type is a simple yet powerful tool that allows Binance users to trade in a safer and more flexible way. This special type of order is useful for locking in gains, limiting risks, and even for entering and exiting positions. However, before using OCO orders, traders should have a full understanding of limit orders and stop-limit orders.
