As part of the basic essentials of cryptocurrency trading, understanding how to reduce your risks is vital in a potentially volatile market. The digital currency industry has come a long way, however, compared to the traditional markets, it remains volatile. Anyone can trade their way to financial independence if the right tools are used.

Crypto exchanges like Binance offer Stop-Limit orders, which could act as a stop loss for traders to minimize their losses if the market moves unfavorably.

Binance offers OCO orders, or “One Cancels the Other,” allowing traders to place two orders at the same time, a Limit and a Stop-Limit order.

However, OCO orders are restricted to one order that would be executed, not giving the trader the flexibility and options of multiple exit points. On the other hand, crypto trading automation platform CoinPanel acts as a solution to rigid exchange orders, by allowing traders an option to create multiple exits in a trade.

In this article, we will be exploring the differences between OCO orders and using crypto trading automation platform CoinPanel.

What is an OCO order?

An OCO order combines two orders, a Limit order and a Stop-Limit order. While two orders are set through an OCO, only one of the orders will be eventually executed.

Although essentially setting a take-profit order as the Limit and a Stop-Limit order as your stop-loss is a better risk management strategy than not having a stop loss, many traders will soon realize that the OCO order has many limitations.

What are the limitations of OCO?

First of all, OCO orders only allow for two orders, which minimizes the flexibility of your exits. Traders may realize that multiple exit points may be needed for a trade to be successful while minimizing losses. OCO orders do not enable users to set multiple take-profit orders.

This means that if the price does not hit the only Limit order that was set in the OCO, the trade may eventually reach the stop-loss price, and the trader failed to reel in any gains at all.

Secondly, the OCO order on Binance only allows you to set Stop-Limit orders on the exchange, which is the only type of stop-loss order you can create. It is known that sometimes during durations of high volatility, stop-limit orders are not always guaranteed to fill, and you may not be able to cut your losses.

How does CoinPanel make trading different from OCO?

CoinPanel makes multiple exits in a trade possible. As simple as that, you can be able to set various take-profit orders and stop losses for one entry. This way, traders are able to decide which levels to start making a profit, and if the highest level set in the trade is not reached, the trader is still able to maximize their gains.

The Full Trade feature on CoinPanel even adjusts the stop loss amount automatically when take profit orders are executed, so you don’t even have to worry about your stop loss failing or having to adjust it. You can sit back and relax, knowing that your trades are fully set while understanding fully the risks you are taking when you set your stop loss.

Therefore, you might be vulnerable to massive losses if the market moves in an unfavorable fashion. Instead, stop-market orders are a safer bet when it comes to ensuring stop-loss orders get filled.

CoinPanel offers stop-market orders which allows you to exit your position once the stop (trigger) price hits. Stop-market orders is a CoinPanel specific order, which directly sends your order to the exchange as a market order once the stop price hits. This way, even while the market is highly volatile, you can still ensure that you can exit your position.

If you haven’t already, try out CoinPanel, a smart crypto trading assistant that could your life easier!