How “OCO (Order cancel orders)” works on cryptocurrency exchanges Like Binance, Bittrex, Poloniex, KuCoin, HitBTC, CEX, Huobi pro … and more
An OCO (Order Cancels Order) is a pair of orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order combines Take Profit with a Stop Loss order. If any of the order executed another order automatically gets canceled. Idea behind
According to Investopedia:
Traders can use OCO orders to trade retracements and breakouts. If a trader wanted to trade a break above resistance or below support, they could place an OCO order that uses a buy stop and sell stop to enter the market. For example, if a stock is trading in a range between $20 and $22, a trader could place an OCO order with a buy stop just above $22 and a sell stop just below $20. Once the price breaks above resistance or below support, a trade is executed and the corresponding stop order is canceled. Conversely, if a trader wanted to use a retracement strategy that buys at support and sells at resistance, they could place an OCO order with a buy limit order at $20 and a sell limit order at $22.
For example, let say that an OCO order consists of two orders; 1) a limit order to buy 500 shares of one symbol and 2) a stop order to sell 200 shares of another symbol. If the limit price of #1 is hit and fills, the stop order #2 is automatically canceled.
How to place OCO order:
- Create an account on TrailingCrypto and log in.
- On settings page enter your API Key and Secret( Click here to know how to create API and Secret and Click here to know how to configure it on TrailingCrypto)
- Select exchange. (A drop-down menu on the top left)
- Select OCO order type.
- Select Base and Quote coin.
E.g. Market: BTC/LTC
- Select the number of coins needs to be sold.
E.g. 10 coins. (quantity could be in the fraction)
- Fill the Stop Loss fields. Refer to Stop Loss.
- Fill the Take Profit fields. Refer Take Profit .
A hypothetical example:
Suppose the current market price of NEO is $100. Now someone placed an OCO order with Taking Profit at $110 and Stop Loss at $90. If the market hit $110 then, Take Profit option will be executed and at the same time, Stop Loss order will be canceled.
Imagine if the market doesn’t go well, and price hit $90. This time stop loss order will be executed and same time take profit order will be canceled out.