How do OCO (One Cancels the Other) orders work on Bitvavo?

Summary

This article explains OCO (One Cancels the Other) orders on Bitvavo. You’ll learn what an OCO is, when to use it, how funds are reserved, and how triggers, submission, and cancellation work. It also covers edge cases, limits, and FAQs.

An OCO order links two conditional exit or entry orders for the same asset, a ‘take-profit’ and a ‘stop-loss’. When one trigger is hit and its order is submitted, the other is canceled automatically. OCO helps you automate risk management for positions with a single setup.

(Each side of an OCO order is sometimes referred to as a “leg” in trading terminology.)

What you can do with an OCO order

• Automate exits: Set a profit target and a protective stop loss at the same time.
• Reserve funds efficiently: Bitvavo locks only one portion of funds (not both orders).
• Avoid double execution: When one order is triggered and submitted, the other is canceled.

How an OCO order works (sell-side example)

Create the OCO: You can set following prices:

• Take profit: trigger price. This is the sell that triggers if the price goes up, so you can lock in profit.
• Stop loss: trigger price. This is the sell that triggers if the price goes down, so you can limit your loss.

Together, these orders prepare you for both scenarios.

Awaiting trigger: The system monitors both triggers. Nothing is placed on the order book yet; only one portion of funds is reserved.

Trigger hit:

• If the take-profit trigger is hit → the take-profit order is submitted and the stop-loss order is canceled.
• If the stop-loss trigger is hit → the stop-loss limit order is submitted and the take-profit order is canceled.

Execution: The submitted order can be filled or partially filled based on available liquidity and order type (limit or market).

How an OCO order works (buy-side example)

Create the OCO: You can set the following trigger prices:

• Take profit: trigger price. This is the buy that triggers if the price goes down, so you can enter at a better price (typically submits a limit order).
• Stop loss: trigger price. This is the buy that triggers if the price goes up, so you can catch a breakout (typically submits a stop-limit or market order).

Together, these orders prepare you for both scenarios.

Awaiting trigger: The system monitors both triggers. Nothing is placed on the order book yet; only one portion of funds is reserved.

Trigger hit:

• If the take-profit trigger is hit → the buy limit order is submitted and the stop-loss order is canceled.
• If the stop-loss trigger is hit → the buy stop-limit (or market) order is submitted and the take-profit order is canceled.

Execution: The submitted order can be filled or partially filled based on available liquidity and order type (limit or market).

How to place an OCO

1. Open the Pro App or Pro Web.
2. Select the asset you want to place an OCO order for.
3. Select the OCO order type.
4. Set the take profit order trigger price (and limit price if applicable).
5. Set the stop loss trigger price (and limit price if applicable).
6. Choose the amount of the asset you want to buy or sell.
7. Tap Preview order. If all looks good, tap Place order.

Edge cases and protections

• Fast market / unfillable price: If the market gaps through your stop or if the limit becomes unfillable, the system cancels both orders to prevent unexpected trades.
• Illiquid market protections: If a submitted order is canceled by price protections, both orders are canceled.
• Changes: It is not possible to change an OCO order after it has been created. Instead, cancel the OCO order and create a new one with the updated prices or amount.
• Balance checks: For sell-side OCO, you must hold enough of the base asset for the full quantity at submission.

Good practices

• Keep a sensible distance between trigger and limit on each order to account for volatility.

FAQ