The One Cancels Other (OCO) order option allows users to place a pair of orders with the condition that if one is fully or partially executed, the other is automatically cancelled. The OCO accomplishes this by combining a stop and a limit order.
This option is available only for limit orders and allows you to specify both take profit and stop loss targets for your position.
For instance, If the market price is 250 and the trader wants a stop order at 245 and a limit order at 260, then an OCO order may be appropriate. If the market reaches 245, the stop order will trigger a market order and cancel the limit order at 260. If the market reaches 260 before 245, the limit order will execute and cancel the stop order at 245.
Important: If you manually cancel one of the OCO orders, i.e., the stop or the limit, you must also manually cancel the other. An OCO order is automatically cancelled if the other order is partially or fully executed by market price movement.
How to add an OCO order option on Bitfinex
1. Firstly, log in to your Bitfinex account.
2. Then, you will be redirected to the Trading page of the Bitfinex platform.
3. Here, you can select the relevant trading pair from the ticker.
4. On the order form, if you have selected a Limit or Limit (Order Book) order, you should see the OCO order option checkbox available and enter the OCO Stop amount.
5. Finally, you simply complete your order.
If you have any questions, please feel free to reach out to Bitfinex Support. We are happy to help!