Binance, Exchanges

What Is OCO Order in Binance?

An OCO order, or “One Cancels the Other” order, is a type of conditional order that is often used by traders to manage risk. An OCO order consists of two separate orders.

One order is designed to execute at a certain price, and the other is designed to cancel the first order if it does not fill.

For example, let’s say that a trader has identified a stock that they believe is undervalued and they want to buy it. However, the trader is also aware that the stock is fairly volatile and there is a chance that it could drop sharply in price before it starts to rise again.

To manage this risk, the trader could place an OCO order. The first part of the OCO order would be a buy order at $10 per share.

The second part of the OCO order would be a sell stop order at $9 per share.

If the stock drops below $9 per share, the sell stop order would be executed and the trader would limit their losses. However, if the stock starts to rise and hits $10 per share, the buy order would be executed and the trader would start to realize profits.

OCO orders can be very useful for traders who want to take advantage of opportunities while also managing their risk. However, it’s important to remember that OCO orders can only be placed as part of a brokerage account and they must be approved by your broker before they can be executed.

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