How to Use OCO (One-Cancels-the-Other) Order Type — Binance, Kolin Lukas

A One-Cancels-the-Other (OCO) is a pair of orders combining a stop-limit order and a limit maker order on the same side, with the same order quantity. When either one of the orders is executed (the stop price is triggered for stop limit order), the other one is automatically canceled. When either one of the orders is being canceled, in effect the entire OCO order pair is canceled.

Price Restrictions:

• For sell orders, the prices have to follow the following rule:
• Limit price of limit maker order > Market price > Stop price of stop-limit order.
• For buy orders, the prices have to follow the following rule:
• Limit Price of limit maker order <. Market price < Stop price of stop-limit order.

e.g: If the last price is 10:

A SELL OCO must have a limit price greater than 10, and the stop price lesser than 10.

A BUY OCO must have the limit price lesser than 10, and the stop price greater than 10.

Example:

You have 300 USDT in your account, and you think the overall trend of the BNB/USDT market is going up. You want to enter the market at a reasonable price. The last traded price of BNB is 28.05 USDT, and the resistance is around 29.50 USDT. You want to buy BNB when it hits 27.00 USDT, but you also don’t want to miss out on the opportunity when the price…