OCO

OCO is an acronym most commonly associated with finance, where it stands for One Cancels Other. An OCO order is a contingent trading instruction that places two orders simultaneously with a linkage: if one order is executed, the other is automatically canceled. This mechanism helps traders manage risk by ensuring that only one of the two potential outcomes can occur.

In practice, an OCO setup frequently pairs a stop-loss order with a take-profit or limit order. If the price moves to trigger one side, the corresponding opposing order is canceled to prevent conflicting requirements. OCO orders can be used across various asset classes, including stocks, futures, options, and foreign exchange, and they are implemented in many trading platforms as bracket orders or conditional orders. Variations exist in how triggers are defined and how quickly the companion order is canceled after execution.

Beyond finance, the acronym OCO is sometimes used in other contexts, but there is no single universally recognized meaning outside trading. Taken on its own, OCO most reliably denotes One Cancels Other within trading systems and market activity.