1️⃣3️⃣ Automate Your Trades with the OCO Order – Protect Your Profits and Limit Your Losses

📅 Publication: 03/07/2025

🎯 Goal: MAXIMIZE YOUR PROFITS AND MINIMIZE YOUR LOSSES WITH OCO ORDERS

In this guide, you will learn to use the OCO Order (One Cancels the Other) on Binance to automate your trades, allowing you to realize profits automatically or limit your losses, without having to monitor the market all the time.

🔹 What is an OCO Order?

An OCO Order combines two orders:

✅ Limit Order (Take Profit): Sets a target price to sell and make a profit.

✅ Stop-Limit Order (Stop Loss): Sets a price to sell if the market falls, avoiding larger losses.

How does it work?

If one of these orders is executed, the other will be automatically canceled.

This allows you to manage risks and protect your investments.

📌 Practical Example with BTC at $100,000:

Imagine that you have 1 BTC purchased at $100,000 and want to sell with profit if it rises to $110,000, but also want to avoid losses if the price falls to $95,000.

1️⃣ Limit Order (Take Profit):

• Set a sell order at $110,000 to realize profit.

2️⃣ Stop-Limit Order (Stop Loss):

• Activation Price (Stop Price): $95,000 → If BTC reaches this value, the order will be activated.

• Limit Price: $94,500 → Ensures that the sale occurs as close as possible to the stop.

✅ If BTC rises to $110,000, your limit order will be executed, and the stop-limit order will be automatically canceled.

❌ If BTC falls to $95,000, the stop-limit order will be activated, and upon reaching $94,500, it will be executed, canceling the limit order.

💡 This way, you ensure profit if the price rises and protect your capital if the price falls!

🔹 How to Set Up an OCO Order on Binance?

Step by Step:

1️⃣ Access your Binance account: Log in and go to the [Trade] - [Spot] section.

2️⃣ Select the trading pair: Choose BTC/USDT or another desired pair.

3️⃣ Choose the type of order: In the dropdown menu, select OCO.

4️⃣ Set the parameters:

• Price (Limit Order – Take Profit): $110,000

• Stop Price (Activation Price): $95,000

• Limit Price (Stop-Limit Order): $94,500

• Quantity: 1 BTC

5️⃣ Confirm the order: Review the details and click Sell BTC to place the OCO order.

⚠️ Important: Make sure that the prices are correctly set to avoid unexpected executions.

🔹 Advantages of Using OCO Orders

✔️ Automation: Allows you to set exit conditions without constantly monitoring the market.

✔️ Risk Management: Protects your investments by pre-defining profit-taking and stop-loss levels.

✔️ Flexibility: Can be used for both buy and sell orders, adapting to various strategies.

• What is an OCO Order and how to use it:

https://www.binance.com/en/support/faq/detail/360032605831

• Binance Academy – OCO Orders:

https://academy.binance.com/en/articles/what-is-an-oco-order

🎯 Conclusion and Next Steps

✅ Now you know how to use the OCO Order to automate your trades on Binance, ensuring greater control over your investments and less worry about market fluctuations.

📍 Next Guide:

1️⃣4️⃣ How to Use the Trailing Stop Order on Binance to Sell at the Best Moment

🚀 Want to learn more? Explore free content from #BinanceAcademy :

🔗 https://academy.binance.com/en

#CRYPTOFACIL (03/07/2025)