A One Cancels the Other Order (OCO) in cryptocurrency is a type of order where two orders are placed simultaneously. These two orders are linked together, and if one order is executed, the other order is automatically canceled. This type of order is commonly used by traders to manage their risk and protect their investments.
For example, a trader might place a buy order above the current market price and a sell order below the current market price. If the buy order is executed, the sell order will automatically be canceled. Conversely, if the sell order is executed, the buy order will be canceled.
OCO orders help traders automate their trading strategies and react quickly to market movements. By setting up two orders at once, traders can ensure that they are protected in case of sudden price fluctuations. This type of order can be useful for active traders looking to capitalize on short-term price movements.
