Why Should Traders Use OCO Orders While Trading Cryptocurrency?

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. 

If you need any kind of information on this article related topic click here: cryptocurrency exchange Moneta Digitec

Leave a Reply

Your email address will not be published. Required fields are marked *