Binance is the largest crypto exchange in the world it offers various services for its clients to help them trade the way they want and feel more comfortable with such as margin trading , otc , oco , stop limit, and some other features and trading order. in this article, we want to talk about the OCO order. Before starting your trading in Binance exchange read about different order types and choose the one which fits you most.
OCO order is the best of the Binance order world.
OCO stands for one cancels the other.
When you put OCO order it places two orders for you. When you put OCO order it places two orders for you one at a higher price and one at a lower price. Like it automatically puts a selling order at a higher price and a selling order at a stop-loss price. If the price gets lowered and hits the stop loss it’s going to sell that stop loss and it’s going to cancel the higher price. And if the price goes high it’s going to execute the higher price and it’s going to cancel the stop loss. That’s the reason it’s called order cancel the order. Talking about Binance OCO; I have to add that our Binance clone script also has oco order.
Stop limit puts one order, limit order puts one order but OCO puts two orders at the same time and that’s the beauty of OCO orders. OCO sets the limit and stop-limit for you whether you want to buy or sell.
The benefit of using OCO orders is that if one part is executed, the other order will automatically be canceled. this will stop the trader from a huge loss.
Bitcoin is 50000$ now, if Bitcoin falls down to 45000$ set a buy position for me at 45000$, also we open a stop-limit position which we set the stop limit 55000 that if the market achieved 55000$ open a position and buy at the price of 56000. It was an example and we set these numbers based on the technical analysis that we have made. You can set all these positions both for the buy and selling mood.
How Does OCO order work?
In the selling mood, the trader will set the amount of price to the highest amount that she/he thinks the market will achieve and he wants to sell at that price to gain the most profit. And the stop price is the value that the traders set in case the price fall down and when the market reached the price they set, the traders open a new position in a limit section price to sell assets in this amount this position will be activated when the market price reaches the stop order price. look at the picture below it will show you the use of each section in the selling mood.
In case a trader wants to buy assets, he will set the price to the lowest price he wants to buy a digital asset in the market and the stop price is the trigger value to starting a new position, it means if the market price of that asset reached that stop value a new position will be activated to buy that asset at the price that is set in the limit section. the following picture shows the use of price,stop,limit section in the selling mood.
this trading order can be added to the platform, you should ask your cryptocurrency exchange software development company to embed this feature in your exchange.
we hope this article helps you and clear the question about OCO order in Binance. If you have any other questions comment down below. we will be glad to help you.