OCO (One Cancels the Other) is a linked order instruction where two orders are placed simultaneously, and when one order is executed, the other is automatically cancelled. It is used by traders to set both a profit target and a stop-loss for the same position at the same time.<\/p>\n
An OCO order consists of two orders: When one executes: This ensures the trader is not left with conflicting open orders (cannot simultaneously sell a stock twice).<\/p>\n Scenario: You buy a stock at Rs 300. If the stock rises to Rs 350, Order 1 executes and Order 2 is cancelled. If the stock falls to Rs 270, Order 2 executes and Order 1 is cancelled.<\/p>\n – Automates trade management; no need to manually cancel one order after the other executes OCO orders are widely used in derivatives<\/a> markets to manage intraday and swing trades. Bracket orders<\/a> (a related concept in Indian markets) often function as OCO structures within a single position.<\/p>\n Riya buys Nifty<\/a> futures at 22,500. She wants to book profit if Nifty reaches 22,700 and exit with a loss if it falls to 22,300. She places an OCO order: sell limit at 22,700 (profit target) and sell stop at 22,300 (stop-loss). When Nifty reaches 22,700, her limit order executes, the stop-loss is cancelled, and her trade is complete.<\/p>\n – OCO links two orders: when one executes, the other automatically cancels OCO (One Cancels the Other) is a linked order instruction where two orders are placed simultaneously, and when one order is executed, the other is automatically cancelled. It is used by traders to set both a profit target and a stop-loss for the same position at the same time. What Is an OCO Order? An […]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-14428","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"OCO (One Cancels the Other) is a linked order instruction where two orders are placed simultaneously, and when one order is executed, the other is automatically cancelled. It is used by traders to set both a profit target and a stop-loss for the same position at the same time. What Is an OCO Order? An…","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/14428\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=14428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n– **Order 1**: typically the profit-taking limit order<\/a> (sell above current price)
\n– **Order 2**: typically the stop-loss order (sell below current price)<\/p>\n
\n– The other is immediately and automatically cancelled<\/p>\nOCO in Practice<\/h2>\n
\n– Order 1 (take profit): Sell limit at Rs 350
\n– Order 2 (stop-loss): Sell stop at Rs 270<\/p>\nBenefits of OCO Orders<\/h2>\n
\n– Ensures disciplined exits (both profit and loss limits are pre-set)
\n– Reduces emotional decision-making at critical price levels
\n– Works in all market conditions; captures upside while limiting downside<\/p>\nOCO in Options and Futures<\/h2>\n
Practical Example<\/h2>\n
Key Takeaways<\/h2>\n
\n– Used to simultaneously set a profit target and a stop-loss for the same position
\n– Eliminates the risk of duplicate sells or unmanaged open orders
\n– Widely used in intraday trading<\/a>, swing trading<\/a>, and derivative<\/a>s management
\n– Available on most Indian broker<\/a>s’ platforms for equity<\/a> and derivative segments<\/p>\n","protected":false},"excerpt":{"rendered":"