One-Cancels-the-Other Order (OCO)

A one-cancels-the-other (OCO) order consists of two conditional orders that state that if one of them is executed, the other one will be immediately canceled. An OCO order on an automated trading platform sometimes combines a stop order and a limit order. The other order is automatically canceled when the stop or limit price is reached and the order is executed. OCO orders are used by more experienced traders to limit the risk after entering a trade.