OCO meaning is “One Cancels the Other”. An OCO order consists of a pair of orders that are created concurrently, yet it is only possible for one of them to be executed. This means that as soon as one of the orders is fully or partially filled, the other one will be automatically cancelled. OCO orders may also be referred to as Order Cancels Order, although this term is much less commonly used.
Basically, an OCO is a conditional order that combines a limit order with a stop-limit order, making it a basic form of trade automation. In other words, an OCO order gives you the option to place two limit orders simultaneously. This is what makes the OCO function a great trading tool for improving success rates and minimising potential losses.
OCO orders may also be helpful to traders who are trying to enter positions. For instance, if BNB is trading between $35 and $40, you may create an OCO order that either buys on a resistance breakout (above $40) or buys if the price drops to the $35 support level. If one of the orders gets executed the other will be cancelled. Typically, traders would place a new order immediately after the OCO happens.
In conclusion, OCO meaning is “One Cancels the Other”, and an OCO order enables traders to trade in a more secure way, either by locking potential profits or limiting risks. There is greater versatility when trading this way as well.
