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High volatility and price fluctuations are significant traits of a crypto market. However, it provides multiple profit opportunities to the traders, but the risks are also increasing in parallel. For this purpose, traders use multiple trading techniques to maximize their profit. OCO (one-cancels-the-other) order is one of the commonly used techniques. In this guide article, we will learn about OCO orders and their application in the crypto market.

Understanding OCO Order

An OCO (one-cancels-the-other) order is used in the crypto market to place two commonly known orders, a limit order and a stop order, at the same time. The other one gets canceled whenever a trader implies any of these orders. It helps the investors to decide their entry and exit positions in the trading market and manage the risks properly.

As the name of the order tells, execution of one order automatically cancels the other; therefore, no one can apply for both limit order and stop order simultaneously. Moreover, OCO order also decreases the need for constant market monitoring. The two components of an OCO order perform their function when required. The limit order applies if the price exceeds the set price, whereas the stop order applies when the price decreases more than the set price.

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However, in addition to the crypto market, OCO orders can be applied to another traditional trading, such as stocks or other entities.

Reasons to Use OCO Order

An OCO order provides multiple benefits to traders in the crypto market. Traders can minimize the loss in the crypto market by setting stop orders and limiting orders simultaneously. It increases profit opportunities by erasing risks. In addition, it also decreases the influence of human emotions in trade activities. Traders can make decisions based on their everyday goals and decide their entry and exit positions in the market through logical thinking.

Moreover, OCO orders also minimize the requirement of constantly monitoring market movements and checking price fluctuations. It automates the trading process by automatic execution and cancellation of orders.

Understanding Stop Order

A stop order is executed when the market moves in an opposite direction to the set goals in trading. A stop order limits the loss probability if the market goes down suddenly, known as a stop loss order. Moreover, if the traders want to start applying for buy orders at a specific price, they can use stop-entry orders. Stop orders help traders to avoid significant losses.

Understanding Limit Order

Traders can sell or buy any asset at determined prices using a limit order. A buy limit order is automatically executed as the asset’s price reaches the determined price. Similarly, a sell limit order is applied when the price of asset increases above the set price.

Managing Risks in Open Positions

An OCO order is set when traders have to decide on an open position in the market. This helps minimize the risk probability if the market moves in the opposite direction. Moreover, it helps to check all profit probabilities in the market.

Method to Target Breakouts

When the price of any asset breaks out, it may continue the trade in the specific price range. An OCO order may be helpful in conditions where the price may increase above the resistance or decrease below the set price.

Method to Decide Between Two Currencies

An OCO order is applied when traders choose between two currencies. It helps the traders decide on favorable price conditions and invest according to the set goals.

Execution of an OCO Order

The process of implementation of an OCO order depends on the trading conditions. Some exchange platform offers a convenient interface for users. It also decides the traders select order types they want to apply.


OCO order helps traders, particularly in the highly fluctuating crypto market, allowing them to earn maximum capital. It is a popularly adopted technique for efficient risk management and earning a good profit.

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Nathan Ferguson

By Nathan Ferguson

Nathan Ferguson is a talented crypto analyst and writer at Herald Sheets, dedicated to delivering comprehensive news and insights on the ever-evolving digital currency landscape. With a strong background in finance and technology, Nathan's expertise shines through in his well-researched articles and thought-provoking analysis. He holds a degree in Economics from the University of Chicago, and his passion for cryptocurrency drives him to stay up-to-date with the latest industry trends and developments.