One Cancels the Other Order (OCO)

A conditional pair of orders that ensure that the execution of one of the orders shuts down the other.

One Cancels the Other (OCO) orders are special orders characterized by controvert outcomes. OCO consists of two orders that are not generally opposite (that is, one buys and the other sells), but makes sure that once one of the orders has been executed, the other is terminated. It uses the typical ‘if-then’ condition to ensure that only favorable conditions are met.

OCOs are not very common. However, expert traders use them to enter and secure positions while reducing potential risks.

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