Another day, another feature. We’ve set out to make the most sophisticated trading platform for users of all kinds, and we won’t rest until we’re done.
Today, we’re thrilled to be able to unveil a new order type for limit orders, the One-Cancels-the-Other (or, simply, OCO). In fact, it would be more correct to refer to it as a pair of orders, wherein the triggering of one cancels the other. One order will be a stop order, whilst the other will be a limit order. When either one of these is activated (i.e. the set stop price is reached), the other one is canceled. Alternatively, if the user cancels either of the orders, the entire OCO order is voided.
Why might the OCO function appeal to you, you ask? In markets as volatile as the cryptocurrency ones, it serves as a powerful risk management tool. Let’s draw on an example where you own 5 BTC, currently trading at $8,000. You know that this price is likely to sway wildly in the coming weeks, months and years, and you want to cash out at $10,000. That said, you don’t want to be left holding your coins if the price dips below $7,000.
An OCO order is perfect for you in this case. It will cover both possible outcomes (BTC price dips to $7,000 and BTC price reaches $10,000), and sell the stipulated holdings depending on which price is hit first. As soon as one is triggered, the OCO pair is canceled.
To set up a One-Cancels-the-Other order on BTSE, simply head over to the order tab:
Our aim is to create a platform that offers you the most enjoyable trading experience. If you have questions or suggestions, please don’t hesitate to reach out to us at email@example.com or DM us on Twitter: @BTSEcom.