Manage your trading risks and earn profits with OCO orders

1. Manage your trading risks and earn profits with OCO orders There are lots of ways to earn profit in the crypto trading market. For successful trading, you have to choose the right trading style, make use of advanced order types, the best trading strategies, choose an exchange, and more. Default orders are fine, but with advanced orders, one can improve his trading style and can earn good profits. Crypto trading can be convenient if a trader can place two orders at a time with different conditions, where one can be canceled automatically if the other is executed. Have you ever heard of such a kind of strategy? You know what is this? OCO Order This hack is OCO (One-Cancels-the-Other) order. In this advanced order type, trading becomes quite easier and more profitable. Generally, this trading combines a limit order with a stop-limit order, but one of these orders can be executed and the other one gets canceled. In other words, as soon as one of these orders gets partially or fully filled, the other one will be canceled. Apart from this, the manual cancellation of one of these orders will also cancel the other one. The most popular exchange like Binance allows you to use OCO orders as a basic form of trade automation. This feature at Binance gives you the option of placing two limit orders simultaneously, which may come handy for minimizing potential losses and take profits. Example: Suppose the current market price of BTC is $120. Now someone placed an OCO order with Taking Profit at $130 and Stop Loss at $110. If the market price for BTC hits $130 then, the Take Profit option will be executed and at the same time, the Stop Loss order will be canceled automatically. Imagine if the market doesn’t go well, and the price hits $110. This time stop loss order will be executed and at the same time take profit order will be canceled out. How OCO orders are used? Usually, OCO orders are used by the traders to trade breakouts and retracements. This is because the limit order is used in reverse trading strategies, while the stop order is used for the breakout trading strategies. If you want to trade breakouts, considering an OCO order is a better option. The use of OCO order on Binance

2. When trading on Binance exchange, you can use OCO order as a basic form of trade automation. To perform the operation of OCO orders, first, you need to open an account on an exchange like Binance. And when it is done, all you have to do is to log in and visit the Basic Exchange interface. After that, you have to search for the area of trading. When it is successfully found, you have to click the option ‘’stop-limit order’’. By performing this step, you will be able to open the dropdown menu, and then you can choose to select the option of ‘’OCO’’. If you wish to place an OCO order with combo orders of buying and selling, then referring to the Binance platform is the right choice. While placing an OCO order, a new interface will be shown. This interface will allow you to set a limit or stop-limit order together. You can see the limit order in the order book. Well in the case of stop-limit, the stop value defines the price at which the order is going to be triggered, and limit signifies the real price of the order after triggering the stop. When the OCO order is placed, you can see the details of both orders by scrolling down to the Open Orders section. Let’s understand the use of OCO order with an example: For instance, you just bought 5 BNB at 0.002729 BTC as you believe that this price is closer to the major support zone and will go up as predicted. In this case, you may choose OCO feature to place a take-profit order at 0.0029 BTC and combine it by setting a stop-limit order at 0.0024900 BTC. If your assumption is correct, and the price of BTC increases to or above 0.0029 BTC, a sell order will be executed and the stop-limit order will get cancelled automatically. But, on the other side, if your forecasting goes wrong, and the price of the asset falls to 0.0024950 BTC, then a stop-limit order will be triggered. This will minimize your losses potentially even if the price drops more. Important Point to be noted: In the above example, the Stop Price is 0.0024950 (trigger price) and the Limit Price is 0.0024900 (the trading price of your order). ll this means that:  The stop-limit order would be triggered at the moment the price for BTC reaches 0.0024950. But, the actual trading price of your order would take place at 0.0024900.  On the other side, if BNB/BTC drops to or below 0.0024950, a limit sell order at 0.0024900 will be placed. When are the OCO orders beneficial? OCO feature is a simple yet powerful tool which allows a trader to trade in a safer and versatile way. The best crypto trading platforms like TrailingCrypto connects its traders

3. to Binance and other exchanges via API while allowing them to trade automatically by making use of bots. OCO orders are beneficial for the traders in so many ways, let’s understand it how: If you don’t have time to watch the charts constantly, and react to the market as the price action unfolds.  You could use an OCO order so that your reaction to a certain price is pre- determined. This allows traders to take advantages of such opportunities automatically. Using resistance and support levels is one of the best ways to use OCO orders.  If there is a strong downward trend, and you think that the price of the asset will move down, you could request a buy order well below the support level and a buy order above the support level with an OCO order when there is a short position. If one of the orders gets fulfilled, the other one will be canceled. Conclusion So, OCO orders are the unique type of conditional orders which are best in reducing risks and protecting your profits for entry and exit orders. Make sure to have a complete understanding of limit (take profit orders) and stop-limit orders to understand the depth of using OCO orders.