Orders & Execution
Intermediate
OCO Order (One-Cancels-Other)
Also called: one cancels other, bracket order
A pair of orders linked so that when one fills, the other is automatically cancelled.
Definition
OCO (‘one-cancels-other’) lets you set two opposing or alternative orders that share a single allocation of risk. Most commonly used for bracket orders: place a take-profit limit and stop-loss stop on the same position — one fills, the other dies.
OCO is also useful for breakout entries: a buy stop above the range and a sell stop below; whichever direction breaks, you’re in — the other cancels.
Example
EUR/USD is in a 1.0800–1.0860 range. You place an OCO with a buy stop at 1.0865 and a sell stop at 1.0795. Price breaks down to 1.0795 → sell triggers, buy cancels.