OCO Orders: How They Can Limit Your Crypto Trading Risk

The crypto market is attractive to new and experienced traders because of its strong trends, which also bring increased volatility and risk. One way experienced traders manage this increased risk is by incorporating one-cancels-the-other (OCO) orders into their strategies. OCO orders help traders lock in profits, manage risk, and easily enter and exit positions. This allows traders more time to analyze the market with less time spent babysitting each trade. Curious about how to include OCO orders in your arsenal of risk management tools? In this article, we’ll discuss what is an OCO order, common ways to use it and how to place an OCO order.

What Is an OCO Order? 

An OCO order is actually a pair of conditional orders. It specifies that if one order fills, then the other order is automatically canceled. The OCO order is commonly used to manage risk in an open trade, or to straddle the current market price in entering a new position.