What is the stop loss strategy using OCO on Binance

If you are a beginner in the trading world, it is essential to learn how to protect your capital from significant losses

One of the best tools for this is the OCO feature or what is known as One Cancels the Other

It simply means that if one of the orders is fulfilled, the other is automatically canceled

How the OCO feature works

When you use OCO on Binance, you place two orders together

1 A sell order at a specified price higher to secure profit if the price rises

2 Stop Loss order to protect yourself from loss if the price drops

Once one of the orders is executed, the other is immediately canceled

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A practical example for beginners

Suppose you bought a currency for $10 and expect it to rise, but you want to protect yourself from loss at the same time

You place OCO as follows

• Take Profit selling price $12 for example, you sell and take your profits

• Stop Loss $9.5 to protect capital

• Stop Limit Trigger price $9.6 meaning if the price reaches $9.6 the stop is activated

Thus

• If the price rises to $12, you sell and take profit

• If the price drops to $9.6, the sell order at $9.5 is activated to protect you from loss

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Steps to use OCO on Binance

1 Go to the trading page and select the pair you want to trade

2 Click on the Sell option

3 Select OCO from the types of orders

4 Fill in the data

• Limit Price is the profit price at which you want to sell to achieve profit

• Stop Trigger price is the price at which the stop order is activated when the market reaches it

• Stop Limit Price is the final stop price at which the sale occurs after the stop is activated

5 Click Sell to activate the order

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An important tip for beginners

• Do not trade without a stop loss no matter how confident you are in the trade

• Determine the percentage of loss you can afford before entering any trade, for example, 2 to 5 of your capital

• Make using OCO a fundamental habit in every trade

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In summary

The OCO feature on Binance is a powerful tool to protect your profits and reduce your losses and is considered an important step for every beginner who wants to trade safely and professionally