The OCO order is an advanced order type offered by Binance that lets you set take-profit and stop-loss simultaneously. Register a Binance account to experience various advanced order features, and remember to get the Binance APP to manage your trading strategies anytime.
What Is an OCO Order
OCO stands for "One Cancels the Other." It allows you to place two linked conditional orders at the same time: a take-profit order and a stop-loss order. When either order is triggered and executed, the other is automatically cancelled.
Here's a simple example: you bought BTC at 65,000 USDT and want to take profit at 70,000 while also setting a stop-loss at 60,000 in case of a larger drop. With an OCO order, you can set both sell conditions simultaneously — no matter which direction the price goes, the system handles it for you automatically.
Components of an OCO Order
An OCO order actually consists of two sub-orders:
Limit Order (Take-Profit): This is your profit target price. For instance, with the current price at 65,000, you set a limit sell price of 70,000. When the market price reaches 70,000, the system places a sell order at that price.
Stop-Limit Order (Stop-Loss): This includes two prices — the Stop Price (trigger price) and the Limit Price. When the market price drops to the trigger price, the system automatically places a sell order at your specified limit price. The trigger price and limit price are usually set very close together, for example, trigger at 60,000 and limit at 59,900.
Steps to Set Up an OCO Order on Binance
Step 1: Open the Binance APP, go to the spot trading page, and select your trading pair.
Step 2: Find and select "OCO" from the order type dropdown menu.
Step 3: Set the limit order section. Enter your desired take-profit sell price, such as 70,000 USDT.
Step 4: Set the stop-loss section. Enter the trigger price (Stop), such as 60,000 USDT, and the stop-loss limit price (Limit), such as 59,800 USDT. It's recommended to set the stop-loss limit slightly below the trigger price to ensure execution even during rapid price drops.
Step 5: Enter the sell quantity. Note that both sub-orders in an OCO share the same sell quantity.
Step 6: After confirming all parameters are correct, click "Sell" to submit the order.
Buy-Side OCO Orders
The example above is a sell-side OCO, but you can also set up buy-side OCO orders. For instance, with BTC at 65,000, you might want to buy at a low price of 60,000 (limit buy order) while also chasing a breakout above 68,000 (stop buy order). OCO ensures you don't miss entry opportunities in either direction.
Tips for Setting OCO Orders
Don't set the stop-loss limit too far from the trigger price. If the price drops rapidly, a large gap between the trigger and limit price could result in a final execution price far below your expectations. But if set too close, it may not fill during rapid volatility. A general recommendation is to set the limit price about 0.5% to 1% below the trigger price.
Make sure your account has sufficient available balance. An OCO order freezes the corresponding assets at the time of placement — if the balance is insufficient, the order submission will fail.
Don't set unreasonable take-profit to stop-loss ratios. Good trading practice suggests that take-profit space should be at least 1.5 to 2 times the stop-loss space. For example, if your stop-loss is 5%, your take-profit should be at least 7.5% to 10%.
Advantages of OCO Orders
The biggest advantage is freeing up your time and energy. After setting up an OCO, you don't need to watch the market constantly — whether the price reaches your take-profit or stop-loss level, the system executes automatically. This helps you avoid emotional decisions that lead to missed profits or delayed stop-losses.
OCO orders bring more discipline to your trading and are a tool every serious trader should master.