OCO Order
One Cancels Other Order

Oco or One cancels other order allows a trader to execute only one of the possible two trades.

Placing order with your broker, is the first step you take, after you create your 'Trading Action Plan', based on your own technical or fundamental research. Before you can start buying and selling stocks, you must know the different types of orders and when each one is appropriate.

What is a OCO Order or One Cancels Other Order?

This is a conditional request made to the broker (or the system) to execute one of the two orders. Which ever order meets the required parameter first is executed and the other order is cancelled.

This order allows the trader to invest the available funds in only one trade and it allows the traders to be prepared for one of the two outcomes.

When to use a OCO Order or One Cancels Other Order?

OCO Order is used when you have two options for a trade.

For example your research comes out with the possibility of two equally good trades. If you place an order for only one trade, you may not be able to enter the trade, because your criteria may not meet.

But you are not interested in taking both the trades.

In such a situation place both the orders with this attribute. Then when one order which meets the required parameters gets executed, the other order is automatically gets canceled.

The classical situation where I use this OCO Order is when I chase a profitable trade. I will have two orders to close my trade. One at the target and one is a trailing stop order.

If the price reaches the target first, then trade is closed at the target and the trailing stop order is canceled.

If the trailing stop order is hit first, then target order is canceled.



Compare One Cancels Other Order with other type of trading orders.

  • All or None Order
  • It is a conditional request made to the broker (or the system) to buy or sell a required number of shares at particular price, only if full quantity of shares are available.
  • GTC Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or canceled.
  • GTD Order
  • It is a conditional request made to the broker (or the system) to keep the order in system until it gets executed or till a predetermined date.
  • IOC Order
  • Immediate or Cancel is a conditional request made to the broker (or the system) to execute the transactions immediately or to cancel it.
  • Limit Order
  • Limit Trading Order is a conditional request made to the broker (or the system) to buy or sell a stock at a particular price or at a better price.
  • Market Order
  • Order to buy or sell at market is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price.
  • Stop Loss Order
  • Order at stop is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price.
  • Stop Limit Order
  • Order at stop limit is a conditional request made to the broker (or the system) to execute the transactions with the immediate best available price, once the price crosses a predetermined trigger price but with in a predetermined limit price.
  • Minimum Fill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only when a minimum number of shares are available.
  • Market on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price.
  • Limit on Close Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at the closing price but with in a limit price.
  • Market on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price.
  • Limit on Open Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market opening price but with in a predetermined limit price.
  • Market If Touched Order
  • This is a conditional request made to the broker (or the system) to buy or sell a stock at what ever the market price only after the stock trades at particular predetermined price.
  • Iceberg Order
  • This is a conditional request made to the broker (or the system) to buy or sell a large required quantity of stock, but in smaller predetermined quantity.
  • Fill or Kill Order
  • This is a conditional request made to the broker (or the system) to execute the transactions only if the full quantity of shares are available, or else to cancel the order.





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