What is an OCO order?
A one-cancels-the-other (OCO) order is a pair of conditional orders stipulating that if one order executes, the other order is automatically canceled.
An OCO order combines a stop order (STOP-LIMIT or STOP-MARKET) with a limit order. Please note that canceling one of the orders will also cancel the other one.
There are two conditions for OCO orders:
- When one of the orders gets fully filled, the other one will be canceled automatically.
- When one of the orders gets partially filled, the other one will not be canceled. If the stop order gets triggered, the system will cancel the limit order and place the stop order ( The stop order quantity= deduct the partially filled quantity of the limit order ).
How to use OCO orders?
OCO orders are a helpful order type for traders to do risk control in volatile markets.
There are three key elements of OCO orders:
- Price: Limit order - The price you expected to Buy or Sell.
- Trigger price: If the market trend is not as expected, you can place your stop-limit or stop-market order with trigger price for risk control.
- Limit price: When the market hits the trigger price, the order will be placed based on your “Limit Price.”
To use OCO orders, please go to the trading page and find the OCO order in order types selection. After selecting the OCO option, a new trading interface will appear:
For example: the current BTC price is 58,000 USDT, and you would like to buy BTC at 55,000 USDT. But if the market is not as expected and rises above 59,000 USDT, you would like to place an order at 59,550 USDT to buy
There are different scenarios with OCO orders:
- Filled at 55,000 USDT: The system will cancel the stop order.
- Partially filled at 55,000 USDT: stop order remains active. Once BTC hits 59,000 USDT, the system will cancel the limit order and place the stop-limit order.
- BTC hits 59,000 USDT without any filling: the system will cancel the 55,000 USDT limit order and place the stop-limit order.
Please note: WOO X will check your OCO orders when the market hits your trigger price. Your stop-order will be rejected if you don’t have sufficient available buying power or if (Margin ratio*Leverage) is lower than 100%. The limit order will remain active.