Truly Utilizing the Full Potential of One Cancels the Other (OCO) Orders in Forex
Do you know what limit orders and stop orders are? Simply put, limit orders place limits at which you would want to buy an undervalued currency, or sell an overvalued currency. Likewise, stop orders are exactly the opposite, and place limits at which you would want to sell an undervalued currency or buy an overvalued currency to avoid making a bigger loss.
Combine the two and you have one of the most potent weapons in the forex arsenal: One Cancels the Other (OCO) Orders.
To put it in the easiest terms possible, OCO orders just mean that you’re accounting for both possibilities, i.e. profit and failure. So the minute one order is fulfilled, the others is cancelled and becomes null and void.
In many situations this can be put to use to limit your potential losses, while maximizing your potential profits.
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