OCO (One Cancels the Other) orders are an advanced order type in Binance spot trading that lets you set both take-profit and stop-loss simultaneously — when one triggers, the other is automatically canceled. Register on Binance to learn advanced trading features, and download the Binance APP to use OCO orders by selecting them on the spot trading page.
What Is an OCO Order?
An OCO order consists of two linked orders: a limit sell order (take-profit) and a stop-limit order (stop-loss). When one order is triggered and executed, the other is automatically canceled. This way you don't need to monitor the market constantly — whether the price breaks up or down, there is a corresponding order protecting your position. For example, if you bought 1 BTC at 65,000 USDT, you can set an OCO order with a take-profit price of 70,000 (lock-in profit) and a stop-loss price of 62,000 (maximum loss limit).
How to Set Up an OCO Order
On the Binance spot trading page, select "OCO" as the order type. You need to fill in the following parameters: Price (the limit order price, i.e., take-profit price), Stop Price (the trigger price — when the price drops here, the stop-loss triggers), Limit (the actual order price for the stop-loss, usually set slightly below the stop price to ensure execution), and Quantity. For a long BTC example: set Price to 70,000 (take-profit target), Stop Price to 62,000 (trigger for stop-loss), Limit to 61,800 (the stop-loss order price, slightly lower than the trigger to ensure execution), and Quantity to 1 BTC. After submission, the system places both orders simultaneously — if the price rises to 70,000 it sells for take-profit, and if it drops to 62,000 it triggers a sell order at 61,800.
Tips for OCO Order Parameters
The take-profit price can be set based on resistance levels from technical analysis, targeting the nearest strong resistance. The stop-loss should be set below a technical support level, leaving room for normal price fluctuations. The stop-loss limit price should be 0.5%-1% below the trigger price — too close and it might not execute during a rapid drop, too far and the actual sell price could be too low. The reward-to-risk ratio should be at least 2:1, meaning the take-profit distance is at least twice the stop-loss distance. After placing the order, you can check the OCO order status in "Open Orders" where the two linked orders will be marked with an OCO label. If market conditions change, you can cancel and reset.
Ideal Use Cases for OCO Orders
The most typical scenario is setting an OCO for protection immediately after buying spot. For example, after buying BTC through DCA, set an OCO with take-profit and stop-loss and you can relax without watching the market. Another scenario is around key price levels: buy when price approaches a significant support level, then use an OCO with stop-loss below support and take-profit at a target above. Short-term traders can use OCO in intraday trading to avoid emotional decisions. Long-term investors can also use OCO to set a loose stop-loss protection (e.g., more than 20% drop) and an aggressive take-profit target (e.g., double).
Important Notes About OCO Orders
OCO orders occupy the frozen balance corresponding to both orders' quantities, so ensure your account has enough assets to sell. If you manually sell part of your position, remember to adjust the OCO order quantity to avoid execution failure due to insufficient balance. OCO orders cannot be used across trading pairs — each pair needs to be set separately. During extreme market volatility, stop-loss orders may not execute at the ideal price due to price gaps (a characteristic of limit orders), though this is relatively rare with major trading pairs. It is recommended to periodically check whether your OCO settings still match current market conditions and adjust parameters as needed.