Beyond basic market and limit orders, OCO and trailing stop orders are powerful tools for risk management and profit locking. Register on Binance and download the Binance app to use them.
What Is an OCO Order?
OCO stands for "One Cancels the Other." It places two orders simultaneously — a take-profit limit sell and a stop-loss limit sell. When one triggers, the other is automatically canceled.
Example: Buy BTC at 60,000 USDT, set take-profit at 65,000 and stop-loss at 57,000. If BTC hits 65,000, the take-profit fills and the stop-loss cancels automatically. If BTC drops to 57,000, the stop-loss triggers and the take-profit cancels.
Setting Up an OCO
On the spot trading page, select "OCO" order type. Fill in: Price (take-profit limit), Stop Price (trigger for stop-loss), Stop Limit Price (slightly below stop price for execution), and Quantity.
What Is a Trailing Stop?
A dynamic stop-loss that follows price upward but stays fixed when price falls. In an uptrend, your stop-loss automatically rises, locking in more profit. When the price pulls back by your set callback percentage, it triggers the sell.
Example: 5% trailing stop on BTC bought at 60,000. BTC rises to 70,000, stop rises to 66,500. Price drops to 66,500 (5% pullback) and sells automatically, locking in profit from 60,000 to 66,500.
Setting Up a Trailing Stop
In futures, select "Trailing Stop" and configure: Callback rate (1-5% common) and optional Activation price (trailing only starts after this price is reached).
When to Use Each
OCO: When you have clear take-profit and stop-loss levels from technical analysis. Trailing stop: In trending markets where you want to maximize gains while protecting against reversals. Not ideal for ranging markets.
Important Notes
Both depend on Binance's matching engine, which may lag during extreme volatility. Set callback rates carefully — too tight triggers on normal noise, too wide gives back too much profit.