What is OCO? The Ultimate Trading Tool
45sExplains a powerful but little-known Binance feature that can automate trading and reduce risk, appealing to crypto enthusiasts.
▶ Play ClipAI Summary
This video provides a step-by-step tutorial on using the OCO (One-Cancels-the-Other) order feature on the Binance mobile app. It explains how to set up simultaneous buy or sell orders with take-profit and stop-loss levels, ensuring traders are prepared for both market rises and falls without constant monitoring.
Chapters
[00:02]
Introduction to OCO on Binance
The video introduces the OCO (One-Cancels-the-Other) order feature on Binance, emphasizing its importance and promising a step-by-step guide using the mobile app.
[00:18]
Accessing Binance and Bitcoin Page
Open the Binance app, log in, and from the homepage click on Bitcoin. Then scroll down and click 'Buy' to access the trading page.
[00:47]
Overview of Order Types
The page offers several order types: limit, market, and stop-loss. The video focuses on OCO, which allows placing two orders simultaneously; if one executes, the other is canceled.
[01:29]
Why Use OCO
OCO is advanced and powerful because it lets you place two buy or sell orders at once, automating trade management and preparing for both upward and downward market movements.
[02:13]
OCO for Buying Explained
For buying, OCO places two buy orders: one at a lower price (if market falls) and one at a higher price (if market breaks resistance). When one executes, the other cancels.
[02:59]
Practical Buying Setup
In the 'Take Profit Limit' field, enter the lower buy price. In the 'Activate Stop Loss' field, enter the trigger price for the second buy order. In the 'Stop Loss' field, enter the actual execution price (slightly higher). Then enter the amount and click 'Buy BTC'.
[04:41]
OCO for Selling Explained
For selling, OCO places a take-profit sell order at a higher price and a stop-loss sell order to protect against drops. When one executes, the other cancels.
[05:11]
Practical Selling Example
Example: If you own 0.085 BTC and current price is $114,550, set take-profit at $115,000 and stop-loss activation at $113,800, with actual sell price slightly lower. Enter amount and click 'Sell'.
The OCO feature on Binance is a powerful tool for automating trade entries and exits, allowing traders to manage risk and capture opportunities without constant market monitoring. By setting both take-profit and stop-loss orders simultaneously, traders can be prepared for any market scenario.
Mentioned in this Video
Tutorial Checklist
1
00:18
Open Binance app and log in; if not installed, download and register using the link in description.
3
02:59
For buying with OCO: In 'Take Profit Limit' field, enter the lower buy price (e.g., $114,000).
4
03:39
In 'Activate Stop Loss' field, enter the trigger price for the second buy order (e.g., $115,000).
5
04:08
In 'Stop Loss' field, enter the actual execution price (slightly higher than trigger, e.g., $115,100).
6
04:26
Optionally change stop-loss to market to buy at market price after trigger. Enter amount to buy (e.g., $100) and click 'Buy BTC'.
7
04:56
For selling with OCO: In 'Take Profit Limit' field, enter the target sell price (e.g., $115,000).
8
05:55
In 'Activate Stop Loss' field, enter the trigger price for the stop-loss sell (e.g., $113,800).
9
06:11
In 'Stop Loss' field, enter the actual sell price (slightly lower than trigger). Enter amount of Bitcoin to sell and click 'Sell'.
Study Flashcards (6)
What does OCO stand for?
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What does OCO stand for?
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One-Cancels-the-Other
00:02
What is the main advantage of using OCO orders?
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What is the main advantage of using OCO orders?
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It allows placing two orders simultaneously; if one executes, the other is automatically canceled, enabling automated trade management without constant monitoring.
01:29
In a buy OCO order, what does the 'Take Profit Limit' field represent?
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In a buy OCO order, what does the 'Take Profit Limit' field represent?
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The price at which you want to buy if the price drops below the current price.
02:59
In a buy OCO order, what is the purpose of the 'Activate Stop Loss' field?
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In a buy OCO order, what is the purpose of the 'Activate Stop Loss' field?
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It is the trigger price at which a second buy order is activated, typically above the current price for a breakout scenario.
03:39
In a sell OCO order, what does the 'Take Profit Limit' field represent?
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In a sell OCO order, what does the 'Take Profit Limit' field represent?
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The price at which you want to sell to realize a profit, higher than the current price.
04:56
What happens to the second order when one OCO order is executed?
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What happens to the second order when one OCO order is executed?
easy
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The second order is automatically canceled.
01:29
💡 Key Takeaways
💡
OCO as advanced order type
Explains the core value of OCO: placing two orders simultaneously to cover both market directions.
01:29
🔧
OCO for buying explained
Clarifies how OCO buy orders work with two price levels, ensuring entry in falling or rising markets.
02:13
🔧
OCO for selling explained
Highlights how OCO sell orders combine take-profit and stop-loss to manage trades intelligently.
04:41Full Transcript
[00:02] instantly using the OCO (One-to-One Order) feature on the Binance platform, step by step, using your phone. This feature is extremely important, so pay close attention until the end of the video. The first thing you'll do is open the Binance app and log in to your account. If you don't have it, you can download
[00:18] the app and register using the link below in the video description. You'll also find a link to a book on learning technical analysis in trading. After logging in, from the homepage, click on Bitcoin. This page will appear, and you probably know that
[00:32] all the data related to Bitcoin is here. Scroll down and click on "Buy." This will open another page where you can buy and sell Bitcoin using your USDC or USDT. I'll explain the feature immediately,
[00:47] assuming you've already made a deposit and your funds are in your wallet. This page offers several ways to buy and sell Bitcoin. Any other currency, for example, if you click here, this menu will appear with several options or orders you can use in buying
[01:02] or orders you can use in buying or selling, such as limit orders, market orders, and stop-loss orders. I've explained these in detail in previous videos on the channel, which you can watch after finishing this one. Today, we'll explain the OCO (Open Order Forward) order, which cancels another order.
[01:15] I'll explain the remaining orders in future videos, God willing. So make sure you subscribe to the channel and like the video so it reaches as many people as possible, and everyone can benefit. The important thing is that the OCO feature is considered one of the most
[01:29] advanced and powerful orders because it allows you to place two different buy or sell orders simultaneously on the same currency. If one order is executed, the other is automatically canceled. The idea is that it makes it
[01:41] easier for you to manage your buying or selling operations without constantly monitoring the market, and it allows you to enter the market in two different scenarios. But you might be wondering why you use OCO in trading. Well, we use OCO... In order to do two very important things at the same time, the first
[01:57] thing is to place an order at a specific price, whether to buy or to sell. The second thing is that you can place a second order in the opposite direction if the market moves differently than you expect. In short, it's a feature that makes you ready for any scenario you face in the market, whether it's a rise
[02:13] or fall in price, without having to manually place and cancel orders all the time. To explain it to you exactly and in detail, my friend, the "one order cancels the other" feature, if you're buying, is a tool that lets you place two buy orders at the same time. The first is to buy at a price lower than the
[02:29] current price if the market is falling, and the second is at a price higher than the current price if the market breaks through price higher than the current price if the market breaks through resistance and rises. As soon as one of them is executed, the second is automatically canceled. The idea here is that you ensure you enter the market whether it's falling
[02:44] or rising without having to constantly monitor prices. Now let me explain to you practically, with numbers, how to buy, and then, of course, I'll explain how to sell. So pay close attention because you might get confused between buying and selling. Anyway, if you're buying
[02:59] using OCO, you'll find it here on the page. The first part is the take-profit order, which is written in the "Take Profit Limit" field. Here, you enter the price at which you want to buy if the price
[03:11] drops below the current price of the currency. For example, if the current price of Bitcoin is $114,550 and current price of Bitcoin is $114,550 and you believe that if the price drops to $0,000, it
[03:23] will be a very suitable price to buy at, you would enter that number here. The second part is the stop- loss order, and directly below it, you will find two fields. The first field is "Activate Stop Loss," which is the price at which, if the market reaches it, a second buy order will be activated. Note that this is not the price at which
[03:39] you will buy; rather, you enter here the number at which, if the Bitcoin price reaches it, a second buy order will be activated at a higher price than the one you entered here. For example, if the current price of Bitcoin is $114,550 and you want to buy Bitcoin if
[03:56] its price breaks the resistance at, say, $115,000, you would enter the Here, 115,000 is the first field, and the second field is the stop-loss order. Here, you enter the actual price at which the buy order will be executed
[04:08] after the breakout, meaning after the price reaches the price specified in the stop-loss activation field. Of course, the price here must be slightly higher than the previous price you set in the stop- loss activation field. For example, if you entered $115,000 here, you would enter $115,100 here. If you
[04:26] click here and change this field from stop-loss to market, it will buy immediately at the market price after the price reaches the price you set in the stop- loss activation order. Then, you enter here how much Bitcoin you want to buy, whether it's $100 or $1,000. As soon as
[04:41] you enter the amount you want to buy with, it will automatically tell you how much Bitcoin that is equivalent to. Then, click "Buy BTC," and the buy order will be ready. For selling, this feature allows you to enter... Two sell orders simultaneously: a sell order to take
[04:56] profits at a price higher than the current price, and a stop-loss order to protect yourself if the price drops significantly. As soon as one is executed, the other is automatically canceled. This feature is extremely important when selling because it allows you to manage the trade intelligently without having to
[05:11] monitor the market 24/7. If the price rises to your target, you sell and profit; if the price suddenly drops, you exit with a small profit or loss, preserving your capital. To illustrate this further, let's consider a practical example with numbers. Suppose you own 0,085, five
[05:28] Bitcoins, and the current price is, say, rises to $115,000 to make a profit, but you're also concerned about the price
[05:41] falling below $114,000. In this case, you would simply use... The OCO (Optical Trading Object) works exactly as follows: In the first box, labeled "Take Profit Limit," enter $115,000, the price at which you
[05:55] will realize your quarterly profit. Then, set your at, say, $113,800. This is the price at which the sale will
[06:11] actually occur after the stop-loss order is activated. It must be slightly lower than the previous price. Enter the amount of Bitcoin you want to sell. The value you should receive if the sell order is executed will automatically appear here. This value
[06:27] reflects the selling price you entered in the first box, "Take Profit." Finally, click " first box, "Take Profit." Finally, click " Sell," and that's it.
