OCO Order
Order Types
What it means
One-Cancels-the-Other: two linked orders where filling or triggering one automatically cancels the other. Used to set both a profit target and a stop at once.
Example
You buy at $100 and place an OCO: a sell limit at $110 (take profit) and a sell stop at $95 (stop loss). If price hits $110 first, the $95 stop is canceled -- and vice versa.
Mistake beginners make
Beginners forget to use OCO and end up with an open stop-loss still live after their take-profit filled, accidentally re-entering a short or selling shares they no longer hold.
Related terms
- Stop Order — An order that sits inactive until a trigger price is hit, then becomes a market order. It …
- Limit Order — An order to buy or sell only at a specific price or better. It guarantees the price but no…