What is a One-Cancels-the-Other (OCO) Order?

1. One-Cancels-the-Other (OCO) Orders Explained

2. Advantages of OCO Orders

2.1 Risk Control

2.2 Mechanical Execution

2.3 Increased Efficiency

2.4 Avoidance of Overlapping Trades

3. Trading Scenarios

3.1 Buying

• Traders hope to buy at a lower cost during a pullback but fear missing out if there is no pullback and the price rises. Therefore, if there is no pullback and the price rises, the system needs to buy at the specified price.

• In this case, the spot OCO order includes a stop-loss buy order and a limit buy order.

3.2 Selling

• Traders believe there is still some upward potential from the interim high and want to sell at the highest point but fear a direct decline, resulting in profit loss. Therefore, if there is a direct decline, the system needs to sell at the specified price.

• In this case, the spot OCO order includes a stop-loss sell order and a limit sell order.

3.3 Price Limitation

• Sell Order: Price (Limit Order) > Current Market Price > Stop-Loss Trigger Price (TP/SL Order)

• Buy Order: Price (Limit Order) < Current Market Price < Stop-Loss Trigger Price (TP/SL Order)

4. How to Place a OCO Spot Order?

4.1 MEXC Website

4.1.1 Log in to MEXC and Visit the Spot Trading Platform

4.1.2 Confirming Buy/Sell Prices

4.1.3 Setting Parameters

4.1.3.1 When Choosing to Buy Assets

• The stop-loss buy order is the price at which the asset will be automatically purchased when the price rises to a certain level.

• The limit buy order is the price at which the asset will be automatically purchased when the price falls to a certain level.

4.1.3.2 When Choosing to Sell Assets

• The limit sell order is the price at which the asset will be automatically sold when the price rises to a certain level.

• The stop-loss sell order is the price at which the asset will be automatically sold when the price falls to a certain level.

4.1.4 Place Order

4.1.5 Order Execution

• In the spot OCO strategy, these two conditional orders will exist as a pair, and once one of the conditions is triggered, the other will be canceled.

• Tutorials and guides may vary across different operating systems. Please refer to your actual operating system.

5. Summary