Steem Tutorial: Understand What OCO Order Is All About

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You can place two orders simultaneously by using an OCO, or "One Cancels the Other," order. A limit order and a stop-limit order are combined, but only one of the two can be executed.

In other words, the remaining order will be immediately canceled as soon as one of the orders is half or entirely filled. It should be noted that canceling one of the orders manually also cancels the other.

OCO orders are an easy way to automate trades when trading on the Binance Exchange. You have the option to place two limit orders simultaneously using this tool, which could be useful for capturing a profit and reducing prospective losses.

How are OCO orders used?

You may find the trading section by going to the Basic Exchange interface after logging into your Binance account, as seen below. Open a dropdown menu by clicking "Stop-limit order" and choosing "OCO."

OCO orders on Binance can be created as a pair of purchase or sell orders. By clicking the I symbol, you can learn more about OCO orders.

A new trading interface will load after choosing the OCO option, as seen below. You can concurrently establish a limit and a stop-limit order using this interface. Your limit order's price is known as the limit order price. The order book will show this purchase.

The price at which your stop-limit order will be triggered is known as the "stop-limit stop."(e.g., USDT). The Limit: The price at which your limit order really executes once the stop is activated (e.g., 0.26 USDT).

Quantity:.The size of your purchase (for example, 22.15 STEEM).

Total: The total price of your purchase.
Immediately, after you have placed your OCO order, open both orders.

For example, let's say you just purchased 86.6 STEEM for 22.15 USDT in the belief that the price will increase because it is near a significant support area. In this situation, you can set a profit-taking order at 22.15 USDT and a stop-limit order at 0.25 USDT using the OCO tool.

Your sell order will be carried out and the stop-limit order will be automatically canceled if your forecast comes true and the price increases to or above 0.26Steem

On the other hand, your stop-limit order would be activated if you were to be incorrect and the price fell to 0.24 Steem. In the event that the price declines much further, doing this can help you reduce your losses.

The trigger price for this example's stop price is 0.26, while the limit price is 0.25. (the trading price of your order). This indicates that your stop-limit order would be executed when the price reaches 0.26.

Conclusion:

OCO is a feature in Binance that allows you to trade your assets in a more convenient and worry-free manner.
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