One Cancels The Other Order (Oco)
| An OCO order is a situation in which two crypto orders are placed in parallel, with the condition that if one is executed, the other is canceled. This type of order is often used by traders who want to take advantage of market conditions but are unsure of which direction the market will move. For example, a trader might place a buy order and a sell order at the same time, with the condition that if the buy order is executed, the sell order is canceled. This type of order can be useful in a number of different situations, but it is important to remember that it is not without risk. If the market moves in the wrong direction, it is possible that both orders will be executed, resulting in a loss. OCO orders can be placed using a number of different order types, including limit orders, market orders, and stop-loss orders. Which order type you use will depend on your own trading strategy and the market conditions at the time. OCO orders can be a useful tool for traders, but it is important to remember that they are not without risk. If you are thinking about using an OCO order, make sure you understand the risks involved before you place your trade. |
Share this glosssary
