Tomorrow, Thursday, August 15th, 2019, Binance will carry out scheduled maintenance starting at 2:00 AM GMT: the community’s much-requested OCO order is here.
The novelties introduced by this system update include:
- Matching Engine, API, and WebSocket performance optimizations.
- New order type: OCO (Order Cancels Order), available via the API.
- 5,000 and 10,000 order book levels available from Rest API (GET api/v1/depth).
All deposits and withdrawals will be suspended and Binance warns all users, who have open positions with margin trading, to re-examine their actions. As always, once the update is complete, there will be a 30-minute window during which users can cancel pending orders and make deposits/withdrawals.
OCO order: what is it and why is it important
The OCO (Order Cancels Order) is a sort of pair of orders, which states that if one of them is executed, the other one will be automatically cancelled. This means that it is possible to combine a stop with a limit in a single order. Experienced traders use this type of order to maximise their gains and entry points.
If, for example, an asset is traded in a range between $100 and $110, a trader could place an OCO order with a stop buy just above $110 and a limit sell below $100. Once the price breaks above the resistance, or below the support, the correct order will be executed while the other will be cancelled.
In the same way, the OCO order is used in case the trader wants to buy at a support level and sell at a resistance level. Using the previous example, it would mean buying at $100 or selling at $110.
This type of order will initially only be available through the Binance API. So there is no possibility to interact with the exchange interface to place the OCO order, at least for the moment.
Many other competitors, such as Bitfinex, have been offering this possibility for several years.
