How does the 'one cancels other' order type work in the world of digital currencies?

1 answers

• Roberson HansenJul 17, 2023 · 2 years ago
  The 'one cancels other' (OCO) order type is a popular choice among digital currency traders. It allows you to place two orders at the same time: a primary order and a secondary order. If one of the orders is executed, the other order is automatically canceled. This order type is particularly useful for traders who want to set up specific entry and exit points for their trades. For example, let's say you want to buy Ethereum at $200 and sell it if the price reaches $250. You can place a 'one cancels other' order with a buy limit order at $200 and a sell limit order at $250. If the buy order is filled, the sell order is canceled, and if the sell order is filled, the buy order is canceled. It's a convenient way to automate your trading strategy and minimize risk.
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