What is an OCO order (one cancels the other)?
In one line: An OCO (one-cancels-the-other) order links 2 orders together. When one of them fills, the broker cancels the other one automatically.
A simple example
You already own 100 shares bought at $20.00. You want out either way:
- A sell Limit order at $22.00 (your target)
- A sell Stop order at $19.00 (your stop)
You set them as an OCO. Price climbs to $22.00 and your target fills. The $19.00 stop is cancelled at once.
Without the link, that stop would still be live. If price later fell to $19.00, it would sell 100 shares you no longer own. On some accounts that opens a short position you never wanted.
A second use: two entries
OCO also works before a trade. Say price is stuck in a box between $48 and $52. You could place a buy stop at $52.20 and a sell stop at $47.80. Whichever breaks first fills, and the other order disappears.
Why it matters
OCO is what keeps your exits tidy. It's the engine inside a Bracket order, which adds the entry on top.
It also lets you walk away from the screen. Both exits are waiting, and only one can ever happen.
A common mistake
Thinking OCO means both orders are guaranteed. When price gaps past your stop, the stop fills at the next available price, which can be worse. That's Slippage. OCO handles the cancelling, not the price.
The other slip is setting 2 orders by hand and calling it OCO. Two separate orders are not linked. Check that your platform shows them as a group.
After placing an OCO, look at your open orders list. You should see both orders tied together, often with a bracket or link icon.
For where to put the stop half of an OCO, see how to set a stop loss.
Questions
What does OCO stand for?
One cancels the other. Some platforms write it as "one-cancels-other" or "OCA" (one cancels all) when more than 2 orders are linked.
What is the difference between OCO and a bracket order?
An OCO is just the 2 linked orders. A bracket order is an entry with an OCO pair of exits attached. See OCO vs bracket order.
Can I use OCO orders on TradingView?
When TradingView is connected to a supported broker, you can usually set a stop and target on a position that act as a linked pair. Features depend on the broker.
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