OCO Order
A pair of orders where filling one automatically cancels the other.
Also called: one cancels other · one-cancels-the-other
In plain language
One-Cancels-the-Other links two orders so only one can ever execute. The classic use is a stop loss and a take profit on the same open position.
Without the link you risk a dangerous outcome: both exits fill, closing your position and then opening a new one in the opposite direction without you noticing.
OCO pairs are also used for breakout entries — a buy stop above a range and a sell stop below it, taking whichever side breaks first.
Why it matters
It is the mechanism that lets you leave a trade unattended without risking an accidental reversed position.
Common mistakes
- Placing separate stop and target orders that are not actually linked.
- Forgetting an OCO breakout pair is still live long after the setup has expired.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
An entry order submitted together with its stop loss and take profit.
A predefined exit that closes a losing trade before the loss becomes serious.
A predefined price where a winning trade is closed automatically.
When price moves decisively beyond an established support or resistance level.
The instruction that says how long an order stays active before it expires.