One-Cancels-the-Other (OCO) orders offer traders a powerful tool for the simultaneous execution of different order types, enhancing risk management and trade automation. This functionality pairs two (2) conditional orders, with the automatic cancelation of one (1) order triggers the other. OCO orders are tailored to elevate trading efficiency and risk control, offering you a competitive edge in the market.

 

 

 

Key Advantages and Limitations

Simultaneous Conditional Orders: Traders can concurrently set conditional market or conditional limit stop loss orders for a single asset. For instance, you can place a conditional market stop loss and a conditional limit take profit order for the same asset. Margin requirements are calculated based on the same asset amount.

 

Cancelation Mechanism: In OCO orders, the execution of one order triggers the automatic cancelation of its corresponding order. Traders placing conditional limit orders should note that their order may trigger but not execute, leading to the subsequent cancellation of the corresponding order.

 

Not Available for API Usage: API users won't have access to OCO orders, as they can design strategies to replicate similar functionality.

 

Exclusively for Spot and Spot Margin Traders: OCO orders are available only to users engaged in Spot or Spot Margin trading, including those with Standard and Unified Trading Accounts.

 

Read More

OCO Orders: How They Can Limit Your Crypto Trading Risk

 

 

 

 

How Does OCO Order Work?

A Bybit OCO order is set up with two (2) directional triggers: one for the upper limit and one for the lower limit relative to the current trading price. When one direction is triggered, the other direction is automatically canceled, and the market or limit order set in the triggered direction takes effect. When an OCO order is placed, the assets are occupied before the order is triggered and only one side order margin will be frozen due to the nature that OCO order.

 

 

 

 

Example 1 (Entry strategy)

Suppose BTC is trading within the range of $25,000 and its resistance level at $30,000. Trader A intends to buy BTC either if the price retraces to $25,000 or surpasses the $30,000 resistance.

 

Assuming the current price stands at $27,000, Trader A has set up an OCO order to execute trades upon resistance breakthroughs or support retracements, with the following settings:

1. Establishing a lower limit price using a conditional market order (Take Profit) with a trigger price set at $25,000.
2. Establishing an upper limit price using a conditional market order (Stop Loss) with a trigger price set at $30,000.

 

 

 

Outcome Scenarios:

Scenario 1 (Pullback occurs):

BTC price pulls back to $25,000. Trader A's take profit order is triggered and filled at the market price. Trader A's chasing order at $30,000 has been automatically canceled since the pullback occurred.

 

 

Scenario 2 (No pullback, direct rise):

BTC price rises without retracing back to $25,000.

If the price continues rising and reaches $30,000, Trader A's chasing order is triggered and filled at the market price, and the corresponding take profit order at $25,000 will be canceled. 

 

In this case, Trader A has prepared for both a pullback and a chasing opportunity. The order at $25,000 focuses on a potential retracement, while the order at $30,000 targets a possible breakout. Depending on how the market moves, Trader A's strategy allows him to take advantage of various scenarios.

 

 

 

Example 2 (Exit strategy)

Suppose Trader B holds 2 ETH with an average buy price of $1,500. He anticipates a near-term rise in ETH prices to $2,000 while also aiming to break even in the event of a market downturn. 

 

Assuming the current price stands at $1,700, Trader B sets up an OCO sell order as his take profit and stop loss strategy, with the following settings:

1. Establishing an upper limit price using a conditional market order (Take Profit) with a trigger price set at $2,000.
2. Establishing a lower limit price using a conditional market order (Stop Loss) with a trigger price set at $1,500.

 

 

 

 

Outcome Scenarios:

Scenario 1 (Take Profit):

If the ETH price rises to $2,000, Trader B's Take Profit order is triggered, and his ETH is sold at the market price. The corresponding Stop Loss order at $1,500 is automatically canceled since the take profit was achieved.

 

 

Scenario 2 (Stop Loss):

In the event of a market downturn, where the ETH price drops to $1,500, Trader B's Stop Loss order is triggered, leading to the sale of his ETH at the market price. The corresponding Take Profit order will be canceled.

 

In this case, Trader B has prepared for both the Take Profit order to secure potential profits in the upward market and the Stop Loss order for risk mitigation.

 

 

Notes:

— Currently, TP/SL with conditional market or conditional limit orders is supported. For conditional market orders, only a trigger price is required. However, for conditional limit orders, users will need to set both the trigger and order price.

— Limit orders provide more precise control over the execution price. However, there's a chance that your limit order might not be executed if the market doesn't reach your specified price. For more information, please refer to here.

— For OCO TP/SL with the conditional limit order, please note that when one of the conditional limit orders is triggered, the corresponding SL or TP order will be canceled, even if the limit order is not filled. This is because the system treats a set of TP/SL OCO orders as a whole. As long as the trigger price of one order is achieved, the trigger condition is considered fulfilled, and the corresponding order will be canceled.

 

 

 

 

View Your OCO Orders Details and History

Go to the Spot or Margin Trading page, and tap on All Orders to view your current orders or order history.