One Cancels Other

A One Cancels the Other (OCO) order is a type of conditional order used in trading that combines two separate orders. When one of the orders is triggered and executed, the other is automatically cancelled. This allows traders to plan for multiple market scenarios while ensuring that only one of the two outcomes takes place.

OCO orders are often used to manage risk or lock in profit. For example, a trader might set a take-profit order above the current price and a stop-loss order below it. If the market hits the take-profit level first, the stop-loss order is automatically cancelled, and vice versa. This setup helps automate decision-making.

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