Order Type
OCO Order — Definition & Example
One-Cancels-the-Other: a paired order where executing one side automatically cancels the other.
OCO orders bundle a stop-loss and a take-profit into a single linked structure. When either side executes, the other is cancelled automatically. This prevents the trader from accidentally being stopped out and then having the take-profit hit a position they no longer hold. Essential for any disciplined trade-management workflow.
Example
Long at ₹500. OCO with stop at ₹490 and target at ₹520. If price drops to ₹490, the stop executes and the ₹520 target is cancelled. If price rallies to ₹520, the target executes and the ₹490 stop is cancelled.
Related
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