What is an OCO Order?
An OCO (One Cancels the Other) order is a pair of conditional orders linked together. When one order is executed, the other is automatically cancelled. This powerful order type allows traders to set both a take profit and stop loss simultaneously without having to monitor the market constantly.
OCO orders are essential tools for risk management, allowing you to define your exit strategy before entering a trade. They work on both spot and futures markets on most major exchanges.
How OCO Works
Take Profit Order
Sells when price rises
LINKED
One triggers, other cancels
Stop Loss Order
Sells when price falls
OCO Order Simulator
Configure your OCO order and watch the price simulation to see how it works
Price Chart Simulation
Potential Loss
-$1000.00
-4.0%
Potential Profit
+$2000.00
+8.0%
Risk/Reward
1:2.00
Good
OCO Order Use Cases
Profit Protection
Lock in profits while limiting downside. Set a take profit above your entry and a stop loss below to automatically exit at either level.
Example: Buy BTC at $50,000, set TP at $55,000 and SL at $48,000. Whichever is hit first triggers the exit.
Breakout Trading
Capture moves in either direction. Place buy orders above resistance and sell orders below support.
Example: BTC ranging between $48,000-$52,000. Set buy at $52,500 (breakout) and sell at $47,500 (breakdown).
Range Trading
Trade within established price channels. Buy at support and sell at resistance with automatic exits.
Example: In a $45,000-$55,000 range, set limit buy at $46,000 and limit sell at $54,000.
Setting Up OCO Orders on Binance
Open the Trading Interface
Go to Spot Trading and select your trading pair (e.g., BTC/USDT).
Select OCO Order Type
In the order panel, click on the dropdown and select "OCO" instead of Limit or Market.
Set Your Limit Price (Take Profit)
Enter the price at which you want to take profit. This creates a limit sell order.
Set Your Stop Price (Stop Loss)
Enter the stop price and the limit price for your stop loss order.
Review and Submit
Double-check all values, then click "Sell BTC" to place both orders simultaneously.
Try OCO Orders on Binance
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OCO Orders on Other Exchanges
| Exchange | Available | Feature Name |
|---|---|---|
| Bybit | Conditional OCO | |
| OKX | Bracket Orders | |
| Kraken | OCO Orders | |
| Coinbase Pro | Not Available | |
| KuCoin | Stop Orders |
Common Mistakes to Avoid
Setting Stop Loss Too Close
Placing your stop loss too close to the entry price will result in frequent stop-outs due to normal market volatility. Give your trade room to breathe.
Ignoring Market Conditions
OCO orders work best in markets with clear support/resistance levels. In choppy or news-driven markets, prices can gap through your orders.
Poor Risk-Reward Ratio
Setting a 1:1 or worse risk-reward ratio means you need a very high win rate to be profitable. Aim for at least 1:2 risk-reward.
Forgetting About Fees
Trading fees can eat into your profits, especially on smaller positions. Factor in the cost of entry and exit when setting your levels.
Not Adjusting for Volatility
During high volatility periods, widen your stop loss and take profit levels. During low volatility, you can tighten them.
Advanced OCO Strategies
Trailing OCO
Combine OCO with trailing stops. As price moves in your favor, manually adjust both the stop loss and take profit upward to lock in more profits.
Scaled OCO Exits
Instead of one OCO order, use multiple with different take profit levels. Exit 50% at first target, 30% at second, and let 20% run with a trailing stop.
News Event OCO
Before major announcements, set wide OCO brackets to catch the initial move while limiting risk if the market goes against you.
Frequently Asked Questions
Key Takeaways
OCO orders link a stop loss and take profit together - when one triggers, the other cancels automatically.
They are essential for managing risk without constantly monitoring the market.
Use OCO for profit protection, breakout trading, and range trading strategies.
Always aim for at least a 1:2 risk-reward ratio when setting your levels.
Most major exchanges support OCO orders on both Spot and Futures markets.
Best Exchanges for OCO Orders
These exchanges offer native OCO order support with exclusive fee discounts
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