{"id":61605,"date":"2026-09-03T17:03:42","date_gmt":"2026-09-03T09:03:42","guid":{"rendered":"https:\/\/www.vtmarkets.com\/en-ca\/uncategorized\/one-cancels-the-other-oco-definition\/"},"modified":"2026-09-03T17:03:42","modified_gmt":"2026-09-03T09:03:42","slug":"one-cancels-the-other-oco-definition","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/trading-glossary\/one-cancels-the-other-oco-definition\/","title":{"rendered":"One cancels the other (OCO) Definition"},"content":{"rendered":"

What Is an OCO Order?<\/strong><\/h2>\n

A One Cancels the Other (OCO) order links two separate orders together, so that if one is triggered and filled, the other is automatically cancelled. It’s a way of covering two possible price scenarios with a single instruction.<\/p>\n

How an OCO Order Works<\/strong><\/h2>\n

Traders typically use an OCO order to set a take-profit and a stop-loss at the same time. If the market reaches the take-profit level first, the stop-loss is cancelled, and vice versa, meaning only one outcome can ever be actioned. Some platforms also let traders attach an OCO pair to a pending entry order, so the two exit levels are already in place the moment the trade opens.<\/p>\n

Why Traders Use OCO Orders<\/strong><\/h2>\n

Combining two orders into one OCO instruction can help traders manage a position without needing to watch the market constantly, since the unused order is removed automatically once the other is triggered.<\/p>\n

OCO Orders Don’t Remove Market Risk: What to Keep in Mind<\/strong><\/h2>\n

As a precaution, an OCO order only manages how your existing orders interact with each other, it doesn’t guarantee execution at your chosen price, particularly during fast-moving or illiquid markets. Slippage can still occur even with this order type in place.<\/p>\n

Planning for Two Outcomes at Once<\/strong><\/h2>\n

An OCO order gives traders a structured way to prepare for more than one market scenario without constant monitoring. Like any order type, it works best when used as part of a clearly thought-out trading plan, with both the take-profit and stop-loss levels chosen deliberately rather than set arbitrarily.<\/p>\n

\u26a0 Risk Warning:<\/strong>CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Ensure you fully understand how CFDs work and whether you can afford to take the high risk of losing your money.<\/p>\n","protected":false},"excerpt":{"rendered":"

What Is an OCO Order? A One Cancels the Other (OCO) order links two separate orders together, so that if one is triggered and filled, the other is automatically cancelled. It’s a way of covering two possible price scenarios with a single instruction. How an OCO Order Works Traders typically use an OCO order to Continue Reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[120],"tags":[125],"class_list":["post-61605","post","type-post","status-publish","format-standard","hentry","category-trading-glossary","tag-trading-basics"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t