One Cancels the Other (OCO)
A pair of orders where filling one automatically cancels the other — used to set simultaneous upside and downside exits.
One Cancels the Other (OCO) links two orders so that when either executes, the exchange immediately cancels the remaining one. The pair is most commonly a limit order (profit target) and a stop order (loss limit).
OCO orders are the exit side of a bracket order and are fundamental to automated trade management. Without OCO, a manual cancel of the surviving order is required and is easy to miss.
Some platforms extend the concept to entry OCO orders — for example, buy a breakout above $52 or buy a pullback to $48, whichever prints first.
Related Terms
Bracket Order
A single entry order packaged with a take-profit and a stop-loss; when one exit fires, the other is automatically canceled.
BeginnerLimit Order
An order to buy or sell only at a specified price or better. Guarantees price but not execution.
BeginnerStop-Loss Order
A stop order placed to exit a position at a loss before it grows larger. The primary tool for managing downside risk.
BeginnerTake-Profit Order
A limit order placed above a long entry (or below a short) to automatically lock in gains when a target price is reached.
Beginner