Binance, Exchanges

What Is OCO on Binance?

An OCO, or “one cancels the other” order, is a type of order that combines a limit and market order. The limit order is an order to buy or sell a security at a specific price or better.

The market order is an order to buy or sell a security at the best available price.

One cancels the other orders are used when a trader wants to buy or sell a security at a specific price, but is also willing to accept whatever the market price is if the security doesn’t reach the desired price.

NOTE: Warning: Trading with OCO orders on Binance can be risky. Before using this type of order, be sure to understand how it works and the risks associated with it. If you do not understand how OCO orders work, you should consult a qualified financial advisor before taking any action.

For example, let’s say you want to buy ABC stock for $10 per share, but you’re also willing to accept whatever the market price is if ABC doesn’t reach $10. In this case, you would place an OCO order with a limit buy order at $10 and a market buy order.

If ABC reaches $10, your limit buy order will execute and you will pay $10 per share. If ABC doesn’t reach $10, your market buy order will execute and you will pay whatever the market price is.

One cancels the other orders are often used by day traders and investors who have a specific price Target in mind, but are also willing to accept whatever the market price is if their Target isn’t reached.

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