One Cancels the Other (OCO) Order Definition
One Cancels the Other is a popular order type used in a lot of trading strategies. This includes many Forex and CFD trading strategies. It allows traders to link one pending order with another. If one of the two linked orders is triggered, then the other one is cancelled. There are a number of practical use cases for OCO orders. Most common uses are typically associated with risk management and uncertainty. For example, your technical analysis shows that a breakout can be expected, but you can’t be certain if the market will rise or fall. In this case you a place both Buy and Sell pending orders with enough distance from the market so that only a breakout in progress should hit them. Then when one of the orders is hit, the other will be cancelled.
Currently One Cancels the Other Order type is not available in cTrader. However, OCO orders are mentioned on Spotware’s website and the development of this feature has been confirmed in the cTrader forum, with screenshots provided.