A One-Cancels-the-Other (OCO) is a pair of orders combining a stop-limit order and a limit maker order on the same side, with the same order quantity. When either one of the orders is executed (the stop price is triggered for stop limit order), the other one is automatically canceled. When either one of the orders is being cancelled, in effect the entire OCO order pair is canceled.
Price Restrictions:
For sell orders, the prices have to follow the following rule:
Limit price of limit maker order > Market price > Stop price of stop-limit order.
For buy orders, the prices have to follow the following rule:
Limit Price of limit maker order < Market price < Stop price of stop-limit order.
e.g: If the last price is 10:
A SELL OCO must have the limit price greater than 10, and the stop price lesser than 10.
A BUY OCO must have the limit price lesser than 10, and the stop price greater than 10.
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