Malta-based Binance, one of the world’s largest cryptocurrency exchanges, has enabled OCO order types [One Cancels the Other] to its web trading interface, the introduction of which has been touted as an important development for the crypto-traders. The debut of the feature was announced via a note published on the exchange’s official blog. The same was also announced on Twitter, with the tweet reading,
#Binance Adds OCO Order Type
With OCO, you can both chase the moon and dodge a falling knife!https://t.co/111U5DC25rpic.twitter.com/pF15twdet0
— Binance (@binance) August 22, 2019
The One-Cancels-the-Other [OCO] tool is essentially a pair of orders which integrates a stop-limit order and a limit maker order on the same side, with the same quantity. After the execution of either one of the orders ie. when the stop price is triggered for stop limit order, this feature enables the other one to get automatically canceled. “When canceling either one of the orders, the entire OCO pair is canceled,” the blog went on to say.
The idea behind the introduction of the trading tool is to allow users on the platform to trade securely “by locking potential profits or limiting risks,” while improving success rates and minimizing potential losses.
“It also provides more versatility as you can enter or exit positions without having to choose between a bullish or bearish bias. Other than that, OCO orders may bring peace of mind for traders that don’t want (or lack the time) to track the market activity on a daily basis”
According to the latest announcement, the feature will be enabled at a later date for Binance’s PC and Web Clients.