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Today, there are numerous crypto trading platforms that allow you to trade cryptocurrencies. And, you can make the most of them by choosing the right investments. Whatever crypto trading strategy you have decided on, it is always advisable to use a crypto trading bot to ensure that the right trades are made at the right time. These bots ensure that your trades are made automatically on your behalf.

Binance is one of the most popular crypto exchanges, but the thing is that not all the trading bots available in the market are compatible with this exchange. Choosing the right and most suitable Binance trading bot is a must to trade on Binance automatically.

Binance trading bot

Binance trading bots are the automated software that helps traders to buy and sell cryptocurrencies at the right time and for the right trade. The main goal of this bot is to increase your gains and reduce your risks. This bot also enables the traders to manage all their crypto exchange accounts at one place.

If you want to place any kind trade on the Binance exchange, then a Binance trading bot can analyze the changes in the price in the market across all coins on Binance and place trades on the most volatile ones. Apart from this, It will also keep track of all the crypto coins bought by the trader, and then sells them according to the specified take profit and stop loss by the trader.

The best Binance trading bots 2022

You might be the best trader; however, no one can keep an eye on the market and changing trends continuously without sleeping. And, since the market is highly volatile, it would be careless to avoid watching the market on your leveraged positions. And, there comes the role of crypto trading bots. They will give you returns if the market goes with your strategy. Additionally, it will also cut your losses if your strategy goes against the market.

There are many Binance crypto trading bots in the market, and choosing the right one is difficult. Below is the handpicked list of the top trading bots for Binance with their popular features:

Pionex

If you are looking for the best Binance bot, considering Pionex is easily one of the top options. The Binance trading bot at Pionex allows users to automate their trading without checking the market continuously. This platform has more than 12 trading bots that the traders can access for multiple platforms. There is no minimum deposit amount that you have to make on this platform which means you can start with whatever you’ve got in your budget.

TrailingCrypto

This is one of the best crypto trading terminals that have its own bots supporting multiple exchanges like Binance, Ethereum, etc. The platform offers Binance trading bot that allows traders to open and close positions automatically on Binance. The grid trading bot at this platform provides a variety of trading options to help them maximize their gains. One thing that traders will love about this platform is that they are cloud-based, so you need not download anything to make the most of them. This platform uses API keys and hence doesn’t give permission to anyone to process withdrawals from the trader’s exchange platform.

 Bitsgap

This is one of the most popular crypto trading platforms that provide a huge range of trading options for crypto traders. Some of its offerings include portfolio management, demo mode, signals, and trading bots for Binance and other exchanges. It has also created Binance futures trading bot to help traders earn good profits from both rising and falling markets.

The grid trading bot at Bitsgap lets traders to set the range and limits for their investments, and then allows them to open and close positions in that range automatically. The trading bot for Binance works on both long and short strategies, and places orders to maximize gains and manage the risks of traders.

CoinRule

When it comes to finding the right Binance trading bot, CoinRule is the name you may bank upon. This platform provides better options for beginners, and the fact that they have a very easy user interface makes it quite easy to not only implement the right trading bot, but can build it of your own.

Cryptohopper

This is an all-in-one crypto trading platform that provides access to the best crypto trading and bot services to all its traders like copy trading, backtesting, exchange arbitrage, etc. It has a variety of trading bots like market making bot, arbitrage bot, signals telegram bot, etc.

These bots work on different strategies with different market trends and allow the traders to earn profits and manage risks. This platform has one of the best user interfaces. It uses API keys and hence doesn’t give permission to process withdrawals from the trader’s exchange platform.

Today, many traders are attracted towards crypto investments due to high potential returns. In order to invest in the crypto trading market, it’s important for a trader to have enough knowledge about the market and trading strategies. And, this is the reason why crypto exchange like Binance offers a lot of interesting features and order types. These features help traders to generate profits in long term. One such order type attracting the traders is OCO Order.

Now the question is, what is an OCO Order?

OCO stands for One-Cancels-the-Other order which allows traders to place two orders at the same time and cancel one order automatically whenever the other order is executed. This is an effective tool to secure gains in the market.  

OCO order is a combination of two orders which can be used simultaneously on Binance including a limit order and a stop-limit order. But whenever you place an OCO order, the execution of only one order is possible. This means you can manage your risk by placing a take profit order and then stop-loss order at the same time. By using OCO orders Binance, you automate most of the trading automatically and reduce the need to actively monitor the trade.

The most common orders which can be used as OCO orders are:

Stop-limit order- An order that helps you to manage risks. This order closes your position, locks in losses, and then prevents losses.

Take-profit- This order locks in profits

Example

Let’s understand this order with an example:

Suppose the current market price of any crypto asset say Stock X is $100. Now, you can place an OCO order with Taking Profit at $120 and Stop Loss at $80. 

If the market goes perfectly well and hits the $120 mark then, the Take Profit option will be executed. But at the same time, the Stop Loss order will be cancelled automatically. 

And, imagine if the market doesn’t go well, and the price hits $80, then a stop loss order will be executed and at the same time take profit order will be cancelled out.

Placing an OCO order

The very first step to place an OCO order is placing a primary order i.e. Take Profit order. As an investor, it’s time to head to the crypto trading platform and input all the required details. Once you are done, it’s time to select an OCO order from the available order types under the option advanced order or conditional order.

After placing a primary order, it’s time to enter secondary order. For this order, you can add conditions like Trailing take Profit, trailing limit sell, trailing stop, etc. 

Once you are done, there will be a preview available. Click on confirm and let the system works for you.

There are two main purposes for placing an OCO order:

Managing risks in open positions

Entering either a long or short trade following a breakout

How OCO order works in crypto exchanges like Binance?

As mentioned above, OCO orders help traders to reduce their risks. Usually, a trader sets an OCO order when the market is highly volatile. Otherwise, the trader has to wait for a long before any of the orders work.

However, high volatility is also a drawback for this order type. But, how? Let’s understand it with an example:

Imagine that the crypto trading market is highly volatile. The trader has placed a buy stop order, and expecting that the market will rise soon. And on the other side, he places a sell stop order, considering the changes in the downtrend, or the buy limit order considering a rebound strategy.

However, after the buy stop order was triggered, the deterioration in the market occurred. Here in this scenario, the pending orders will allow the trader to open positions without even monitoring the market.

All this means that the trader could miss that moment whenever the market moves in an opposite direction. As there is no stop-loss, there are chances that you may lose your investments.

High volatility is the reason for this situation, and therefore, it’s better to use the OCO order smartly. For this, you must be pretty sure that the market will form a trend soon and it won’t turn around until it reaches a specific point.

OCO orders are beneficial to those traders who want to limit their risks or those who trade with time constraints. With an OCO order, the orders for your take profit and stop loss levels are taken simultaneously, such that you have predefined the levels of rewards and risks.

If one of these levels hits in the trade, the other one will be canceled automatically. For example, with a long position, a stop-loss order will be placed below the market to limit the losses, and a limit order would be placed just above the market to close the trade to take profit.

When are the OCO orders beneficial?

OCO orders on Binance or any other exchange are beneficial for the traders if they don’t have time to watch the charts constantly, and are unable to react to the market as the price action unfolds.

In such conditions, you could use an OCO order so that your reaction to a certain price is pre-determined. Placing this order type will allow traders to take advantages of such opportunities automatically. One of the best ways to use OCO orders is to use resistance and support levels.

Cryptocurrency trading has become highly prevalent these days. And, because of its volatile nature, more traders are getting involved in it.  

While in the traditional trading of stocks, traders have to wait for a day or two to see a percent change in price. On the other hand, quickness and high flexibility of cryptocurrencies is making it a fun game for traders who love immediate profits. To invest in crypto market, you need some expert knowledge and the right strategy to earn profit. Cryptocurrency exchanges like Binance are offering a lot to traders to make profits like futures and margin trading, stop loss, OCO orders, and more.

Tons of cryptocurrency and trading strategies are offered by the best crypto exchange platform that work to make you rich. The best crypto trading platform makes sure that you can buy and sell cryptos easily.

If you want to maximize your chances of winning, you need to use advanced orders, and one such order type is using OCO order.  This is actually a conditional order where two orders are placed simultaneously, with a rule in place enforcing that if one order is accepted, the other one will be cancelled automatically.

Placing an OCO order is an effective tool that will help traders to secure their profits and gains. Apart from having the right strategy, a trader also requires the best crypto exchange platform to place trades easily. TrailingCrypto is one such crypto trading platform that provides effective tools and advanced strategies to help traders maximize their gains in cryptocurrency.

Let’s understand OCO orders in deep:

What is an OCO order?

An OCO (One-cancels-the-other) order is a type of conditional order which is often placed by the traders with a pair of profit and loss exit orders. If one of these orders is partially or fully filled, the other one will get cancelled automatically.  Often an OCO order combines a stop order with a limit order on the automated crypto trading platform. Generally, this order type is used by the expert crypto traders to mitigate the risks.

An OCO order is a kind of risk management tool which is often overlooked by the traders. Planning forward and knowing what kind of risk management tools to implement while trading crypto is the core of managing your trading portfolio.

This order type not only limits the losses of the crypto traders, but also locks-in their profits by placing two orders simultaneously.

Let’s understand it with an example:

While opening a long position on Bitcoin, two sell orders will be placed, determining the gain and loss exits.

So, if the entry Buy Order is executed, two sell orders (one gain and one loss) above and below the initial entry price will be placed respectively as per the set parameters.

These orders will not be the market orders. The gain order here will be the limit order which goes directly to the exchange where it’s held.

And the loss order will be the stop order. It’s stored locally on the platform and will be executed only if the set price is reaced.

Ultimately, regardless of the price movement, only one order is executed and remains active. Trade automation is vital for success in the volatile crypto market. And, this is what an OCO order achieves.

Usually, an OCO order combines a take profit (limit sell) order with the stop loss (stop-limit) order. If one order executes, then the other order will get cancelled.  Say, if the market is experiencing price gaps as well as sharp price movements, there might be chances that a trader may not be able to open a position at the predefined level. But, setting an OCO order is the solution to all such risks that occur in unplanned trading environment.

When can an OCO order be used?

When trading on Binance exchange, you can use OCO order as a basic form of trade automation.  After logging in to your Binance account, you can go to the basic exchange interface and may find the trading area. Click on stop-limit order to open a drop-down menu and select OCO.

An OCO order can be placed as a pair of buying and selling order. After clicking on the OCO order option, you will see a new interface which will further allow traders to set a limit and the stop-limit order simultaneously.

After placing an OCO order, you can scroll down to visualize the details about both the orders in “open orders” section.

For instance, you just bought 5 BNB at 0.0026837 BTC as you believe the price is closer to the major support zone and will go up as predicted.

Here in this case, you may choose OCO feature to place a take-profit order at 0.0030 BTC along with setting a stop-limit order at 0.0024900 BTC.

If your assumption is correct, and the price of BTC rises to or above 0.0030 BTC, a sell order will be executed and the stop-limit order will get cancelled.

But, on the other side, if your prediction goes wrong, and the price falls down to 0.0024950 BTC, then a stop-limit order will be triggered.  This will minimize your losses potentially, in case, the price drops down even more.

Point to be noted: In the above example, the Stop Price is 0.0024950 (trigger price) and the Limit Price is 0.0024900 (the trading price of your order).

All this means that the stop-limit order would be triggered at the moment the price for BTC reaches to 0.0024950mark. But, the actual trading price of your order would take place at 0.0024900. On the other side, if BNB/BTC drops to or below 0.0024950, a limit sell order at 0.0024900 will be placed.

The OCO feature is a simple yet powerful tool, which allows you and other Binance users to trade in a more secure and versatile way. This is a special type of conditional order which can be useful for locking profits, limiting risks, and even for entering and exiting positions. Still, it’s important for a trader to have a better understanding of limit and stop-limit orders before using OCO orders.

How does an OCO order work?

Often the OCO orders are used in crypto trading as a way to link a stop loss order (used to cut a loss) with a limit order (used to capture a gain). Once the crypto asset price hits a stop loss price target, there is no need for the other order to take profit on the same crypto coin, or vice versa.

For example, if a trader owns the coins of any cryptocurrency say, XYZ, currently trading for $25 per coin. He believes that the coins are undervalued, and expects the price to reach another $20. To make sure he locks in the gains, the trader places a sell limit order for $45, the maximum price at which he wishes to hold the crypto coins. He also places a trailing stop order for $10, which will sell the crypto assets if it drops $10 from its current high. As the prices climb to $45, the trader's sell limit order is triggered, selling his coins, and cancelling his trailing stop.

Let’s understand OCO orders with another example:

Price limits on OCO orders:

For OCO sell orders, the prices have to follow the following rule:

Limit price of limit maker order > Market price > Stop price of stop-limit order.

For OCO buy orders, the prices have to follow the following rule:

Limit Price of limit maker order < Market price < Stop price of stop-limit order.

Say, if the last price for any crypto asset is $30, the sell OCO order must have a limit price greater than $30, and the stop price must be less than $30.

And, on the other side, the buy OCO must have the limit price lesser than $30, and the stop price should be greater than $30.

Example:

A trader has 300 USDT in your crypto exchange account, and he thinks that the overall trend of the ETH/USDT market is going up.

Now, you want to enter the market at a reasonable price. The last traded price of ETH is 28.05 USDT, and the resistance is around 29.50 USDT. You want to buy ETH when it hits 27.00 USDT, but you also don’t want to miss out on the opportunity when the price breaks the resistance price.

 Therefore, you can place an OCO order with a quantity of 10, which combines a limit buy order and a stop limit buy order. The price of the limit maker order is 27.00 USDT. For the stop limit order, the stop price is 29.50 USDT and the limit buy price is 30.00 USDT.

To place an OCO order:

Select OCO order in the drop-down box

Specify limit price as $27, and stop price at $29.5 with a quantity of 10

Click buy ETH to submit an order

Once the orders are submitted, one can review the existing orders in the open orders section.

How to place an OCO order on Binance?

In crypto trading, OCO orders provide a way to traders to sell any crypto asset at a higher price or to place a stop limit to sell if it goes below a certain price.

To set this, you need to click on the arrow beside the OCO and select OCO from the list.

This will add more fields where you can place your price and quantity. Let’s see what those fields are below.

On Binance, OCO order has two sections saying limit order and stop-limit order.

You can consider limit as selling for profit and stop-limit as an order to minimize losses.

Say, any trader bought LTC at $70. Now the price for LTC is trading for $67.

Now, he wants to sell it if it goes beyond $76.06 and make $6.06 profit. However, if it falls below $64.55, the trader wants to sell it off to limit the loss to about $6.5.

While placing the same order on Binance in these fields, two orders will be created. One is limit-maker, and the second one will be stop-limit.

The first order is the limit order to sell LTC at a higher price. Order gets executed if the price reaches $76.06 and you will get $76.06 for selling 1 LTC.

And, second-order is a stop-limit order. In this case, you have set it to trigger if the price of LTC goes below $64.67 and to sell at a price of $64.55. This will give you $64.55 when it sells 1 LTC. If anyone of these two orders gets executed, the other one gets canceled as there would be nothing to sell. That’s OCO — One Cancels the Other.

Using OCOs to close an order

The most common way to use an OCO order is when a trader is about to enter the market but would like to attach a Stop & Limit to the position.

Let’s say, a trader wants to buy 100 BTC in Binance at the current market price. You will also see a Stop at $848 & a limit at $855. This means that as soon as ‘Place Trade’ is clicked, the trader will hold 100 BTCs, with a stop at $848 and a limit at $855.

If either of these attached orders is triggered, the position will be closed and the opposing order will be cancelled. 

Benefits of OCO order

OCO orders are beneficial for the traders if they don’t have time to watch the charts constantly, and reacting to the market as the price action unfolds.

You could use an OCO order so that your response to a certain price is pre-determined. This allows traders to take the advantage of such opportunities automatically. One of the best ways to use OCO orders is to use the resistance and support levels.

If there is a strong downward trend, and you think that the price will move down, you could request a buy order just below the support level and a buy order above the support level with an OCO order when there is a short position.

Placing an OCO order on Binance via TrailingCrypto

The traders can place an OCO order at Binance exchange, and via TrailingCrypto one can directly place an order on the Binance platform too. In trading terms, OCO orders are the best way to sell a crypto asset at a higher price or to place a stop limit to sell it if the price goes below a certain price.

How to place OCO order on TrailingCrypto:

Create an account on TrailingCrypto and log in.

On settings page enter your API Key and Secret key

Select exchange, say Binance. (A drop-down menu on the top left)

Select OCO order type.

Select Base and Quote coin. E.g. Market: BTC

Select the number of coins needs to be sold. E.g. 5 coins. (quantity could be in the fraction)

Fill the Stop Loss fields. Refer to Stop Loss.

Fill the Take Profit fields. Refer Take Profit 

A hypothetical example to understand an OCO order:

Suppose the current market price of BTC is $100. Now someone placed an OCO order with Taking Profit at $110 and Stop Loss at $90. If the market hits $110 then, the Take Profit option will be executed and at the same time, the Stop Loss order will be canceled.

Imagine if the market doesn’t go well, and the price hits $90. This time stop loss order will be executed and at the same time take profit order will be canceled out.

Conclusion

OCO orders are the unique type of conditional orders which are best in reducing risks and sealing profits for entry and exit orders. Make sure to have a complete understanding of limit and stop-limit orders to understand the depth of using OCO orders.

The best crypto trading terminal like TrailingCrypto support both basic and advanced order types including stop-loss orders, take profit, OCO orders, and more. TrailingCrypto allows its users to trade cryptocurrencies in a safer and versatile way. It allows you to trade automatically via crypto trading bot to place orders on your behalf without watching the market.