What is a Stop-Limit order?
Stop-Limit is a conditional order that is activated when a certain price (stop price) is reached. After activation, it becomes a limit order that is executed at the specified limit price or better.
Example:
You bought BNB at $350. To limit losses, you set a stop-limit order with:
• Stop Price: $340 (activation price)
• Limit Price: $338 (selling price)
If the price reaches $340, the order will be activated and set for sale at $338 or above.
What is an OCO order?
OCO (One Cancels the Other) is a combination of two orders: a limit order and a stop-limit order. When one order is triggered, the other is automatically canceled.
Example:
You bought BTC at $30,000 and want to:
• Take profit at $35,000 (limit order)
• Limit losses at $28,000 (stop-limit order)
You place both orders simultaneously via OCO, and when one is triggered, the other is canceled.
How to place orders on Binance
Stop-Limit:
1. Go to the Binance trading interface.
2. In the orders section, select the Stop-Limit tab.
3. Enter:
• Stop - order activation price
• Limit - order execution price
• Amount - number of coins
4. Click Sell or Buy to confirm.
OCO:
1. In the trading interface, select the OCO tab (next to limit orders).
2. Fill in the fields:
• Limit Price - limit order price (for example, for taking profit)
• Stop - stop-limit order activation price
• Stop-Limit Price - stop-limit order execution price
• Amount - number of coins
3. Confirm the order.
Visual prompts (example)
• Screenshot of the Binance interface with the Stop-Limit tab highlighted and fields filled.
• Screenshot of the OCO tab with example parameter entries.
• Infographic explaining how OCO works: arrows show that when one order is triggered, the other is canceled.
Tips for effective usage
• Set the stop price slightly above/below the limit to ensure the order is triggered.
• Use OCO to simultaneously control both profit and loss.
• Test orders with small amounts to get used to how they work.
• Don't forget to take into account fees and possible slippage.
Use Stop-Limit and OCO to automate trading and reduce risks!