What is an OTO or OTOCO order?
A 'One Triggers the Other' (OTO) or 'One-Triggers-a-One-Cancels-the-Other' (OTOCO) order is a type of trade execution strategy where the placement of one order automatically triggers another. Using this strategy, a trader can effectively place primary and secondary orders. When the conditions for the primary order are met, the secondary order is initiated, allowing for seamless, automated trading. This sophisticated strategy manages trading risk and saves time.
When can you use an OTO or OTOCO order?
Here are some scenarios where you can implement an OTO or OTOCO order:
1. Setting Profit and Stop-Loss: Suppose you buy bitcoin in anticipation of a price increase. You can set the order to sell Bitcoin at a desired profit target and simultaneously place a stop loss order to limit potential losses if the price goes down.
2. If you expect Ethereum to rise after a certain resistance level, you can use the order to buy Ethereum when it breaks through that resistance level, while setting a sell price at a profit target above the buy price.
These orders help manage risk and automate much of the trading process, especially in fast or volatile markets.
How to place a limit order with TP/SL?
When placing a Limit Order, you will be able to set the [Take Profit] and [Stop Loss] orders simultaneously.
Click [Limit] and enter the order price and amount. Then, check the box next to [TP/SL] to set the [Take Profit] and [Stop Loss]
Which types of orders support the TP/SL function?
Currently, only limit orders support the [TP/SL] function and we support two types of strategy: One-Triggers-a-One-Cancels-the-Other (OTOCO) and One-Triggers-the-Other (OTO). They allow you to place primary and secondary orders at the same time.
OTO order：Limit order + TP or Limit order + SL
OTOCO order：Limit order + TP + SL
OTOCO order：Limit order + TP + SL
In an OTOCO order, if the primary order is filled, the secondary order will take effect (either Take Profit or Stop Loss). If TP is triggered, SL will be canceled, and vice versa.
Note:
- If the trigger price of the secondary order is too close to the primary order, it is highly likely that the secondary order will be canceled when the primary order is executed. We recommend users set an ample price distance between the primary and secondary orders.
- If the limit order is only partially filled, the TP/SL will not be triggered.
- The TP/SL amount is the initial amount of the primary order. Therefore, if the user withdraws a portion of the base token and the remaining balance is less than the TP/SL amount, the TP/SL will fail.
- The TP/SL amount is the initial amount of the primary order. Therefore, if the remaining balance is less than the TP/SL amount after deducting the fee, the TP/SL may fail. We recommend using BNB to pay for fees to avoid such situations.
Can I view the unfulfilled TP/SL under [Open Orders]?
Tap [Trade] - [Spot] on the Binance App. You can click [View] under [TP/SL] on the primary order to view unfulfilled TP/SL.
To learn more about Binance spot trading, visit the Spot Trading FAQs page.