One-Cancels-the-Other (OCO) Order

A "One Cancels the Other" (OCO) order comprises of a pair of orders that are made simultaneously, however it is an option exclusively for one of them to be executed. This means that when one of the orders get completely or to some extent filled, the other one will be consequently canceled. Albeit more uncommon, OCO orders may likewise be alluded to as Order Cancels Order.
Fundamentally, an OCO is a conditional order that joins a limit order with a stop-limit order, making it an essential form of trade automation. In other words, an OCO order gives you the option to place two limit orders at the same time. This is the very thing that makes the OCO function a great trading device for further developing achievement rates (profit taking) and limiting possible losses (stop-loss).
OCO orders may likewise be helpful while attempting to enter positions. For instance, on the off chance that BNB is trading somewhere in the range of $35 and $40, you might make an OCO order that either buys on a resistance breakout (above $40) or buy in the event that the price drops to the $35 support level. It is worth taking note of, however, that assuming one of the orders gets executed the other will be canceled. So contingent upon the situation, you might need to place another order after your OCO gets set off.
In summary, an OCO order permits you to trade in a safer manner, either by locking likely profits or limiting risks. It likewise gives greater flexibility as you can enter or exit positions without picking between a bullish or bearish bias. Other than that, OCO orders might bring peace of psyche for traders that don't need (or lack an opportunity) to follow the market activity consistently.

Features

• One-cancels-the-other (OCO) is a type of conditional order for a pair of orders where the execution of one consequently cancels the other.
• On many trading platforms, various conditional orders can be placed with other orders canceled when one has been executed.
• Traders generally execute OCO orders for unpredictable stocks that trade over a wide price range.