Skip to content
All library documents

Using Binance OCO Orders for Stop Loss and Take Profit

Article Quant Q&A · Author: Valometrics.com
Read the original

Summary

The document explains how to place a stop loss and a take profit for the same Binance position. The problem is that placing a stop-limit sell order alongside a take-profit limit order leaves the stop order active if the take-profit order fills, potentially closing the position later when the stop price is reached.

The suggested solution is an OCO order, which links a limit order and a stop-limit order so that execution of one cancels the other. This makes the two orders function as alternative exit instructions and is presented as a basic way to automate profit-taking and loss limitation. The explanation is conceptual and points readers to exchange documentation for details; it does not specify order-entry steps, supported markets, or execution edge cases.

Key ideas

  • A standalone take-profit order does not automatically cancel a separate stop-loss order.
  • An OCO order pairs a limit order with a stop-limit order.
  • When one OCO leg is filled, the other is canceled automatically.
  • Canceling either OCO leg also cancels its paired order.

Tags

CryptoExecutionRisk management
Full text
# Stop loss and take profit at the same time on binance


# Stop loss and take profit at the same time on binance












I found on some articles that in order to place a stop loss and a take profit at the same time for a long order, one should buy a market order and sell a stop limit order (with the stop loss value for the stop price and price) in a ddition to sell a limit order (with the take profit value as a limit) but it’s not working if the take profit was hit. In that case, we still have a stop limit order which is executed if the stop loss was then touched. Do you have a working idea to get the SL and TP added to a trade?

Thanks in advance for your answer.

## Answer by Lautaro Parada Opazo (score 2)

https://quant.stackexchange.com/a/57674

I think what you need it's an OCO order ("One Cancels the Other"). In a nutshell, what you are doing is the following:

> An OCO, or “One Cancels the Other” order allows you to place two orders at the same time. It combines a limit order, with a stop-limit order, but only one of the two can be executed. In other words, as soon as one of the orders get partially or fully filled, the remaining one will be canceled automatically. Note that canceling one of the orders will also cancel the other one. When trading on the Binance Exchange, you can use OCO orders as a basic form of trade automation. This feature gives you the option of placing two limit orders simultaneously, which may come handy for taking profit and minimizing potential losses.

Check the official documentation for more details.

Shown in full with attribution under the source's licence. Licence: CC BY-SA 4.0 (Stack Exchange)

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.