A "One Cancels the Other" (OCO) order consists of a pair of orders that are created concurrently, but it is only possible for one of them to be executed. This means that as soon as one of the orders get fully or partially filled, the other one will be automatically canceled. Although less common, OCO orders may also be referred to as Order Cancels Order.
In essence, an OCO is a conditional order that combines a limit order with a stop-limit order, making it a basic form of trade automation. In other words, an OCO order gives you the option to place two limit orders simultaneously. This makes the OCO function a great trading tool for improving success rates (profit taking) and minimizing potential losses (stop-loss).
OCO orders may also be useful when trying to enter positions. For example, if BNB is trading between $35 and $40, you may create an OCO order that either buys on a resistance breakout (above $40) or buy if the price drops to the $35 support level. It is worth noting that if one of the orders gets executed, the other will be canceled. So depending on the situation, you may want to place a new order after your OCO gets triggered.
In summary, an OCO order allows you to trade more securely, either by locking potential profits or limiting risks. It also provides more versatility as you can enter or exit positions without choosing between a bullish or bearish bias. Other than that, OCO orders may bring peace of mind for traders who don’t want (or lack the time) to track the market activity daily.