OCO order: An order that simultaneously places two directions, only one of which will be executed.

Do you often find it difficult when trading? Either you're afraid of not making money, or you're afraid of losing too much. Today, let's talk about a tool that can help you “get it done in one step” — OCO order (“One Cancels the Other”).

What is an OCO order? In simple terms, it's a single sentence.

OCO allows you to place two orders at the same time: one is a take profit order (limit order), and the other is a stop loss order (stop limit order). As soon as one of them is executed, the other will be automatically canceled. This way, you don't have to keep watching the market - you either make a profit or have an automatic stop loss.

How to set up two orders?

Limit Order

It is a regular limit order — you set a price, and when the price is reached, it sells at that price. For example, if you want to sell BNB at 589.52 USDT, it will be executed automatically when the price is reached.

Stop Limit Order

This has two layers:

• Trigger Price (Stop): For example, 553.34 USDT - when the price drops to this point, it activates the stop loss.
• Stop Loss Price (Limit): for example, 553.24 USDT——sold at this price after triggering

Note: If the price drops too quickly, it may fall below your stop-loss price, resulting in the stop-loss order not being executed. Therefore, it is generally advisable to set the stop-loss price slightly lower than the trigger price to increase the chances of execution.

Practical Example: How to Use BNB with OCO?

Assuming BNB is now 577 USDT, you are optimistic about the long-term upward trend but want to buy in at a low point:

Your Plan:

• Buy at 562.91 USDT (low point to build position)
• Sell to make a profit if it rises to 589.52 USDT
• If it drops to 553.34 USDT, stop loss and exit.

Benefits of Using OCO: One order completes three possibilities - wait for a lower point, earn target profit, or automatically stop loss. No need for frequent adjustments, nor to watch the market at midnight.

Why use OCO?

✓ Automated Trading: Set the parameters and leave it, no manual operation needed. ✓ Risk Control: Set stop-loss at the same time to protect the principal ✓ Profit Lock: Automatically sell at target price, do not be greedy ✓ Worry-free: Suitable for busy traders

What should you pay attention to when using OCO?

⚠️ Manually canceling one order will also automatically cancel the other. ⚠️ Setting the stop loss price too close to the trigger price may result in a failure to execute the trade in time. ⚠️ During periods of high market volatility, slippage may cause stop-loss orders to become ineffective.

Core Recommendation: First understand how to use regular limit orders and stop-loss orders before playing with OCO. No matter how good the tool is, it's useless if used in the wrong direction.