An OCO (One-Cancels-the-Other) order is a conditional trading setup that links two orders together, where the execution of one automatically cancels the other.
Traders typically use this when they want to place both a buy stop and a sell stop order simultaneously, or set both a take-profit and stop-loss target at the same time.
For example, if you're waiting for a breakout but aren't sure which direction the market will move, you could place a buy order above current price and a sell order below it.
Whichever order triggers first will execute your trade, while the other order is immediately cancelled.
This prevents you from accidentally entering two opposing positions and helps manage risk while capturing opportunities in either direction.
OCO orders work alongside other essential order types like market orders, limit orders, and stop orders to give traders more sophisticated control over their trading strategies.
The effectiveness of OCO orders depends on your broker's order execution model, whether they use STP, ECN, or DMA systems to process your trades.
In short: An OCO order links two orders where executing one automatically cancels the other, preventing simultaneous opposing positions.
Example in Action
You place an OCO order on USD/ZAR currently trading at 18.0000. Your first order is a buy stop at 18.2000 (expecting a breakout higher), and your second is a sell stop at 17.8000 (expecting a breakdown lower).
When the price rises and hits 18.2000, your buy order executes automatically and the sell stop at 17.8000 is immediately cancelled.
This way, you capture movement in either direction without risking both orders filling at once. Traders often combine OCO orders with limit orders to control both entry points and exit targets within a single strategy. Unlike market orders that execute instantly at the current price, OCO orders wait for specific price levels to be reached before triggering.
Why It Matters
For traders juggling volatile currency pairs like the USD/ZAR, GBP/NGN, or EUR/EGP—markets that can whipsaw without warning—OCO orders aren't just convenient. They're survival tools.
One move locks in profit, the other cuts loss. Automatically. No second-guessing, no panic clicks during a Lagos power cut or Nairobi internet hiccup.
The structure enforces discipline when emotions scream otherwise. It's automation built for markets that don't sleep and traders who can't watch screens 24/7.
Common Questions
Do African Forex Brokers Like Hotforex and FXTM Support OCO Orders?
Most African Forex brokers, including Hotforex and FXTM, do not natively support OCO orders on their MT4/MT5 platforms. Traders must use Expert Advisors or manual workarounds, as these brokers prioritize standard order types over advanced automation.
Can OCO Orders Work With Mobile Trading Apps Popular in Nigeria and Kenya?
OCO orders function on mobile apps used in Nigeria and Kenya through platforms like AvaTrade (Official Site 🔗) Go and OANDA mobile. These apps allow traders to set simultaneous take-profit and stop-loss orders, with both legs automatically canceling when one executes.
Does Poor Internet Connectivity in Rural Africa Affect OCO Order Execution?
Yes, poor rural internet severely disrupts OCO execution across Africa. Unreliable 2G/3G networks cause order delays, partial fills, or failed cancellations. Only 15% rural coverage reaches 4G, making real-time automated trading practically impossible for countryside traders.
Are OCO Orders Allowed Under South African FSCA or Kenyan CMA Regulations?
OCO orders are permitted under both South African FSCA and Kenyan CMA regulations. Neither regulator explicitly prohibits them; focus remains on transparency, client protection, and disclosure. Brokers may impose internal restrictions based on account type or risk policies.
Do OCO Orders Incur Extra Fees With Brokers Operating in Ghana or Egypt?
Brokers operating in Ghana and Egypt typically do not charge extra fees for OCO orders. Standard per-lot commissions and spreads apply, with OCO functionality bundled as a basic trading feature on MT4, MT5, and cTrader platforms.
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