what is o.c.o order ??
An OCO (One Cancels the Other) order in a CEX (Centralized Exchange) is a type of conditional order that combines two orders: typically a limit order and a stop-limit order. When one of the orders is triggered and executed, the other is automatically canceled.
How it works:
You set a limit sell order to take profit at a certain price.
At the same time, you set a stop-limit sell order to cut losses if the price falls.
If the price hits your take-profit level, the stop-limit is canceled.
If the price drops and triggers the stop-limit, the take-profit is canceled.
Example:
Let’s say you hold BTC and it’s trading at $30,000:
You set a limit sell order at $32,000 (take profit).
You set a stop-limit sell order with a stop price at $29,000 and a limit price at $28,800 (cut loss).
If BTC hits $32,000, you sell for profit and the stop-limit cancels.
If BTC falls to $29,000, your stop-limit order is triggered, and the limit order at $32,000 is canceled.
Why use OCO?
It automates risk management.
It avoids having two conflicting open orders.
It’s useful in volatile markets.
