Blockchain Glossary

One Cancels The Other (OCO)

One Cancels The Other

August 28th, 2021   |   Updated on March 10th, 2022

Considered the most basic form of trade automation, one cancels the other (OCO) is an order combining 2 entry orders. It is basically a conditional order stipulating that, if one order is executed, then the remaining one is automatically cancelled. Ultimately, regardless of the price movement, only one order can be executed or remain active in the market at any given time.

Trade automation is vital for success in the markets. This is what an OCO achieves. It essentially eliminates emotions from trading activity and promotes systematic trading by ensuring triggered entering of trades.