One Cancels the Other Order (OCO)

OCO (One Cancels the Other) order types are a commonly used feature in cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... trading that allows traders to set up two orders simultaneously, with one being cancelled as soon as the other is executed.

For example, a trader may set a “Buy” order for BitcoinBitcoin is like a digital treasure that you can use to buy things online. It's like having a secret code that only you know, and... at $50,000 with a “Sell” order at $55,000 and set it as an OCO order. If the price of Bitcoin reaches $50,000, the “Buy” order is executed, and the “Sell” order is automatically cancelled. On the other hand, if the price of Bitcoin reaches $55,000, the “Sell” order is executed, and the “Buy” order is cancelled.

Trading bots can use OCO orders to automatically manage a trader’s positions and protect them from unexpected market moves. For instance, a bot may be programmed to execute an OCO order if the price of a cryptocurrency reaches a certain level. This allows traders to take advantage of favorable market conditions while minimizing their risk exposure.