The crypto trading market is very attractive to both novice and experienced traders. And, because of its high volatility and strong market trends, more and more traders are getting involved in it. In the traditional stock trading, traders have to wait for some time to see a percentage change in the market and its price. But on the other side, the quickness and volatility of cryptocurrencies are making it a more profitable game for the traders looking for immediate profits.

To invest in the crypto trading market, one must have some expert knowledge and strategy to earn good profits. They need to make use of some advanced tools and the right methodology to understand the market in a better way. Cryptocurrency exchanges like Binance are offering advanced tools and order types to make profits like margin trading, futures trading, trailing orders, OCO orders , and more.

If you really want to maximize your profits in crypto trading, you need to choose the best crypto trading platform offering the right tools and advanced strategies to traders. One way the crypto traders can manage the increased risk in the crypto market is by incorporating one-cancels-the-other (OCO) orders in their trading strategy. These orders help traders to lock in their profits, manage risks, and entering or exiting the positions easily.

So, are you curious about how to include OCO in your arsenal of the crypto trading risk management tool? Let's understand what OCO is and how to use it?

OCO order

An OCO is actually a pair conditional orders which specifies that if one order fills, the other will be canceled automatically. This type is commonly used to manage the risks in the open trade.

Also referred to as bracket order, this involves two traditional orders which include a stop and limit order. The stop order is placed at a specific price below the current market, such that if the price is triggered, will convert into a market order. On the other side, limit order which is also placed at a specific price, has a price location better than the current market price.

Let's understand this with an example:

If Bitcoin (BTC) is trading at $60,000, a stop order to buy the asset would be placed at a price above the current market price and the stop to sell would be placed below the market price.

Additionally, a limit order to sell is placed above the current market price, while a limit to buy is placed below the market price.

The grouping of these two orders is conditional because they cannot be executed at the same time. Here, one of the two orders will cancel when the other executes. This order works on a first-come, first-served basis.

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