Stock Market Glossary
OCO order
Order combination in which the execution of one order automatically deletes the other.
In brief: Order combination in which the execution of one order automatically deletes the other.
Meaning in practice
OCO stands for One Cancels the Other. Traders typically combine take profit and stop loss: If the profit target is reached, the stop disappears; If the stop is triggered, the target disappears. This reduces operating errors and is particularly useful for active trades.
Context for investors and traders
For traders, this term is most useful when preparing and executing an order. Its meaning depends on the venue, liquidity, time frame and order type. A single reading is not a reliable buy or sell decision.
How to use this in practice
Use the term first to describe the situation and add verifiable data: time frame, benchmark, costs and liquidity. Only then does it become an assessment that can be connected to an investment objective and risk budget.
What to keep in mind
Avoid false precision. Many market terms describe probabilities or historical patterns; they neither guarantee a return nor replace the review of a specific security.
