How to use OCO orders? Hedging transaction techniques that every newbie in the crypto world must understand.

Are you always worried about missing out or getting liquidated when trading Spot? Try OCO orders, a solution to the dilemma of “wanting to buy the dip but afraid of being smashed.”

What is an OCO Order?

One-Cancels-the-Other, simply put, it means placing two orders at the same time, one gets executed while the other is automatically canceled.

For example, BTC is now $83k, and you set up at the same time:

• Buy order: $82k buy (buy the dip price)
• Trigger Order: $85k buy (buy the dip)

Either successfully buy the dip at $82k or catch the ride at $85k ; whichever order executes, the other will be canceled instantly. No manual effort required, the system is fully automated.

Why use OCO?

1. More Aggressive Risk Management Set stop-loss and take-profit at the same time, with the left hand protecting the capital and the right hand seizing profits, not afraid of being trapped by sudden market changes.

2. Get Rid of Emotions Set the parameters and you don't have to watch the market; the system executes automatically. Don't let the K-line scare you into panic selling.

3. Save Energy No need to frequently adjust orders, saving time and effort, especially suitable for office workers.

4. Avoid Conflicts One order takes effect while another is immediately voided, preventing the awkward situation of opening multiple positions at the same time.

When to use OCO?

Buying Scenario: Optimistic about a certain coin but unsure if it will pull back. Set a pullback price and a breakout price; anyway, you can always get in.

Selling Scenario: Want to wait for a wave, but fear a direct crash. Set a high point for selling and a stop-loss point, ensuring stable profit-taking or timely stop-loss.

How to operate?

Core Logic:

• Sell order: Limit price (higher than the spot price) > Spot price > Stop-loss price
• Buy Order: Limit Price (below Spot Price) < Spot Price < Trigger Price

For example, with the current price of BTC at $83.6k:

Order Settings：

• Stop-loss buy price (trigger): $86k (worried about miss out)
• Limit Buy Price (buy the dip): $81k (waiting for a pullback)

Sell Order Settings:

• Limit Sell Price (Take Profit): $87k (Dream Price)
• Stop Loss Sell Price (Break-even): $80k

Once set up, the system is all-inclusive and will automatically execute trades when any one of the conditions is met.

Risk Warning

OCO is not a cure-all; it can still get hit during extreme volatility or gaps. The market changes rapidly, and if the parameters are set incorrectly, losses can still occur. It is essential to consider your own risk tolerance and market judgment, and not to follow the crowd blindly.

Core Advice: Start by practicing with a small amount of funds to familiarize yourself with the operational process and market temperament, then increase your position size. There are no shortcuts in trading; risk is always the top priority.