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One-Cancels-The-Other (OCO) Order Meaning

A conditional order type that pairs two orders: a stop order and a limit order. Ideally used to manage risk in a volatile market, it allows a trader to set both a "Take Profit" target and a "Stop Loss" limit simultaneously.

When one of the price targets is reached and the order is executed, the trading engine automatically cancels the remaining order. For example, if you bought ETH at $2,000, you could set an OCO to sell at $2,200 (profit) or $1,900 (loss).

This automation removes the need for constant monitoring. It prevents the scenario where a trader executes a profit-taking order but forgets to cancel their stop loss, only to have the price swing back down and trigger an unintended sell order.

It is a fundamental tool for disciplined, non-emotional trading.

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