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Why Should Traders Use OCO Orders While Trading Cryptocurrency?

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작성자 Rafaela 작성일23-06-05 08:02 조회2회 댓글0건

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The crypto trading market has come a long way since its launch.

Back in 2011, the price of Bitcoin was $10,000, and as of now its $16,841. And, let's not forget the moment it has also hit its all-time high of $69,000 in November 2021. With time, all other coins have also followed the trend and hence redefining the crypto space as the best one to invest.



Well, crypto trading has become the best investment options in today's times. A sudden rise in cryptocurrency exchanges has given users direct access to buy or sell crypto assets without any hassle. As we all know that crypto trading market is highly volatile, and prices may change within seconds, it's important for traders to play smartly with different strategies and advanced order types.

These strategies ensure constant profitability for the traders. And, one such solid strategy attracting crypto traders these days is the OCO (One Cancels the Other). This strategy analyzes a trading opportunity technically as well as fundamentally. Basically, it will help you take your trading strategies to the next level.

The popular exchanges like KuCoin, Binance, etc. also offer such orders to allow traders to trade automatically.

OCO order

OCO is an advanced order that gives traders an ultimate choice to place two orders simultaneously. This typically involves combining two types as limit order with a stop limit.

However, only one order is allowed to be fulfilled. If one fulfills, the other one gets cancelled immediately. Generally, crypto trading experts use these orders to mitigate risks, take profits, and to enter the market.

Executing an OCO order

OCO order comes with an automation feature combining a limit and stop limit order.
This way, the traders can automate their positions exits by placing OCO in two instances of taking profits and realizing losses. This kind of order plays well in variable/changing markets where the price can go in different directions. With its automation feature, it helps traders to place trades automatically without watching the market trends continuously.



The very first step to place an OCO is placing a primary order which could be the Take profit order. As an investor, it's time to head to a crypto trading platform like TrailingCrypto and input all the required details. Once you are done, you have to select OCO from the available order types under the option "advanced order" or "conditional order" as mentioned on the trading platform.



After placing a primary order, enter secondary order which could be a stop loss order. For this order, you can add conditions like Trailing take Profit, trailing limit sell, trailing stop, etc. Once you are done, a preview will be available. Click on confirm and let the trading system works for you.



There are two key purposes for placing OCO:
These orders make it easier for the traders to manage risks when entering a position They usually use OCO orders to trade retracements and breakouts
Let's understand it with an example:

If a trader owns the coins of any cryptocurrency, say, XYZ, currently trading for $50 per coin. He believes that the rates of coins are undervalued, and expects the price to reach another $40.

To make sure he locks in the gains from trading, the trader places a sell limit order for $60, the maximum price at which he wishes to hold the crypto coins. He also places a trailing stop for $10, which will sell the crypto assets if it drops to $10 from its current high.
As the prices of ABC climb to $60, the trader's sell limit order is triggered, selling his coins, and cancelling his trailing stop.

Benefits of OCO orders

OCO orders on any exchange like KuCoin, Binance, etc. are beneficial for traders if they don't have time to watch the charts constantly, and are unable to react to the market as the price action unfolds.



In such conditions, using an OCO order is important so that your reaction to a certain price is predetermined. Placing this order type will allow traders to take advantage of several opportunities of managing risks automatically. One of the best ways to use OCO orders is to use resistance and support levels.


If there is a strong downward trend in the market, and you think that the price of the asset will move down, requesting a buy order well just below the support level is beneficial.

And, also you can place a buy order above the support level with an OCO order when there is a short position. This special order type is quite useful in locking in profits and limiting the risks of entering or exiting the positions.

The biggest mistake which most of the traders make during any order type is usually taking out the profits too early or keeping any lost trade.
Most of the traders make these mistakes as they place trades emotionally. At this position, placing an OCO order will solve their problem as once the order is set, the trade will work itself. If this is a bad trade, the stop loss order would execute, and the traders will end up with a calculated or minimal loss.

And, if trade goes in good direction, the sell limit order will be executed, and the trader will earn estimated gains.

The experienced crypto traders use the advanced order i.e. OCO orders as a tool to limit their risks while entering the position. While trading in the Binance exchange, the traders can use OCO order as a basic form of trade automation. It's a simple yet powerful tool that allows traders to trade in a smart, safe, and versatile manner.









For more information regarding and Best Crypto Trading Platform visit here our website: trailingcrypto.com






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