OCO Orders: Pairing Limit Entries with Stop-Triggered Orders
Summary
An OCO order pairs a limit order with a stop limit order so a trader can express two conditional entry or exit possibilities at once. If either order executes, the platform cancels the other; manually canceling one also cancels its counterpart. The limit leg waits for the market to reach its specified price, while the stop limit leg is submitted after its trigger condition is met.
The document explains the platform’s suggested price relationships for buy and sell OCO orders and illustrates a bullish BTC entry: seek a lower-price purchase, while retaining a stop-triggered buy if the market rises instead. This can combine a pullback entry with a breakout entry, but the example does not discuss slippage, trigger mechanics in volatile markets, partial fills beyond noting cancellation, or the risk that a triggered limit order may not fill. The mechanics described are specific to the platform’s spot interface.
Key ideas
- An OCO order links a limit order and a stop-triggered limit order.
- Execution or manual cancellation of either leg cancels the other leg.
- A buy OCO can pair a lower-price limit entry with an upward-triggered entry.
- A triggered stop limit order may not fill if the market moves beyond its limit price.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.