📊 OCO order to buy and sell cryptocurrencies on S-Trade

We continue to introduce you to orders for buying and selling cryptocurrencies on S-Trade. And today we are going to tell you how the OCO order works.

⏺ A OCO order (One Cancel The Other) combines two orders: limit and stop limit, and its main advantage is that when one order is executed, the second order is canceled automatically. In simple words, OCO allows the trader to place two trades at the same time and protect himself as much as possible from losses and insure against the high volatility of the crypto market. 

🔹 Limit order allows you to set the most desirable transaction price for the trader.

🔹 Stop-limit order allows traders to protect themselves from the risk of loss if the price of the asset goes in the other direction. It allows setting upper and lower boundaries of the cryptocurrency price, at which the order will be triggered and the trade will be closed. 

✅ For example, a trader sees that the price of Bitcoin is now $22,000 and wants to buy it at $19,000. In this case, he can choose a CCA order and specify a price of $19,000 in the limit order. But since the crypto market is volatile, it is important for the trader to hedge against risks. To do this, he specifies the following prices in a stop-limit order.

🔹 Stop — the price that must not be lower than the current market value of the asset. For example, $22,500. When this price is reached, the order will be activated. 

🔹 Limit — the price, which must be slightly higher than the stop price. For example, $22 550. When this price is reached, the order will be executed and the asset will be purchased at $22 550, in case the Bitcoin exchange rate does not move in the trader's desired direction. 

🚀 A OCO order is a handy tool for trading that allows you to fix profits, manage risks, and entry and exit positions. 

🎬 Watch the video instruction for OCO orders on S-Trade to see its convenience.

Updated on: 26/04/2023