OCO Order
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An OCO (One-Cancels-the-Other) order is a trading setup that combines two orders, usually a stop order and a limit order. When one is triggered, the other is automatically canceled.
How It Works
OCO orders are often used to manage risk and lock in profits. For example, a trader might set a sell limit order above the current price and a stop-loss order below it. If the price hits the limit, the asset is sold for a profit; if it drops to the stop-loss level, the asset is sold to minimize loss, whichever happens first cancels the other.
Why OCO Orders Matter
OCO orders help automate trading strategies and reduce the need for constant monitoring. They offer better risk management and allow traders to act quickly in fast-moving markets without emotional interference.