A one-cancels-the-other order (OCO) is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled.
Attention: for OCO orders, a collateral of the asset you want to trade may be needed to activate them.
On ParamountDax there are four cases where OCO orders can be used.
1. OCO order can combine a sell-stop order with a buy-stop order or a buy-limit order with a sell-limit order.
When either the stop or limit price is reached and the order executed, the other order automatically gets canceled. Experienced traders use OCO orders to mitigate risk and to enter/exit the market.
For example, if PRDX token is trading in a range between $2 and $4, a trader could place an OCO order with a buy stop just above $4 and a sell stop just below $2.
Once the price breaks above resistance or below support, a trade is executed and the corresponding stop order is canceled.
Conversely, if a trader wanted to use a retracement strategy that buys at support and sells at resistance, they could place an OCO order with a buy limit order at $2 and a sell limit order at $4.
2. OCO order can combine a sell-stop order with a sell-limit order or a buy-limit order with a buy-stop order.
For example, if the PRDX token is trading in a range between $2 and $4, a trader could place an OCO order with a buy-stop just above $4 and a buy-limit order just below $2.
Once the price breaks above resistance or below support, a trade is executed and the corresponding order is canceled.
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Conversely, if a trader wanted to use a sell strategy that sells if support breaks and sells at the resistance, they could place an OCO order with a sell-stop order just below $2 and a sell-limit order at $4.
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Once you have placed an order, you can find existing orders in "Open orders".
When orders are executed or canceled, order history can be found in "Order History".
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