The OCO order on the Binance platform (One Cancels the Other) is a powerful trading tool that allows you to set two orders at the same time:
A Take Profit order and a Stop Loss order, so that one is automatically triggered when the price moves, and the other is automatically canceled.
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What is the function of the OCO order?
In short, the OCO order allows you to:
Set a limit for taking profits if the price rises.
Set a limit for stopping losses if the price falls.
When one of the orders is executed, the other is automatically canceled.
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How to use the OCO order on Binance (selling as an example):
1. Go to the Spot trading page.
2. Select the trading pair (for example, BTC/USDT).
3. In the "Sell" section, choose OCO instead of "Limit" or "Market".
You will see 4 fields:
1. Limit Price:
> The price you want to sell at to take profits
Example: 12,000 USDT
2. Stop:
> The price at which the Stop Loss order is triggered
Example: 9,800 USDT
3. Limit:
> The price at which the Stop Loss order will be executed after activation
Example: 9,700 USDT
4. Amount:
> The quantity you want to sell of the asset
Then press Sell.
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What happens next?
If the price rises to 12,000 USDT, your asset will be sold and profits will be taken.
If the price falls to 9,800 USDT, the Stop Loss order will be triggered, and the asset will be sold at 9,700 USDT or the best possible price.
Once one of the orders is executed, the other is automatically canceled.
