# OCO Orders > A one cancels other order links two orders so that when one fills, the other is cancelled. Learn OCO exits, OCO breakout entries and how to avoid double fills. Source: https://learn.tradelabsai.com/orders/oco-orders/ Track: Orders and Execution · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "OCO Orders", https://learn.tradelabsai.com/orders/oco-orders/ A one cancels other (OCO) order links two orders together so that if one fills, the other is automatically cancelled. It solves a simple but dangerous problem: if you place a stop loss and a profit target as separate orders, and the target fills, the stop is still sitting there. If the price later falls, that stop could fill and open an unwanted short position. OCO prevents that. ## The classic use: exits on an open position You own a position and want two possible exits: a profit target and a stop loss. **Example: An OCO exit** You own 200 shares bought at $30. You place an OCO pair: **Order A:** sell limit at $33.00 (target). **Order B:** sell stop at $28.50 (stop loss). If the price rises to $33, order A fills and order B is cancelled. If the price falls to $28.50, order B fills and order A is cancelled. Either way, you sell 200 shares once, never 400. ## A second use: breakout entries in either direction OCO can also enter a trade on a break in either direction. A stock has been trading between $48 and $52. You place: - a buy stop at $52.20 to enter long on an upside breakout, and - a sell stop at $47.80 to enter short on a downside breakdown, linked as OCO. Whichever triggers first opens your trade, and the other is cancelled, so you do not end up long and short at once. See [Breakout Trading](https://learn.tradelabsai.com/strategies/breakout-trading/). ## OCO inside bracket orders A bracket order is an entry plus an OCO pair of exits that only activates after the entry fills. Platforms often call this OTOCO: one triggers one cancels other. See [Bracket Orders](https://learn.tradelabsai.com/orders/bracket-orders/) and [OTO and OTOCO Orders](https://learn.tradelabsai.com/orders/oto-and-otoco-orders/). ## How cancellation works in practice Cancellation is fast but not instant. In an extremely fast market, both orders could theoretically fill before the cancel reaches the market, though platforms design OCO logic to minimise this. Most brokers handle the link on their servers, reducing the risk. Partial fills add a wrinkle: if the target fills partially, many platforms reduce the size of the linked stop to match the remaining position. Check how your platform handles it. ## OCO and time in force Both orders in an OCO pair usually share the same time in force. For a swing trade, make both GTC so the protection does not disappear at the end of the day. See [Time in Force: Day, GTC and GTD Orders](https://learn.tradelabsai.com/orders/time-in-force/). ## When not to use OCO - **When you want to scale out** with several targets and a stop. You need a structure that reduces the stop as each target fills, which some platforms support and others do not. See [Scaling Out and Partial Profits](https://learn.tradelabsai.com/position-management/scaling-out-and-partial-profits/). - **For hedged positions** where you intentionally want both orders able to fill. ## Common mistakes - **Placing the stop and target separately** instead of as OCO, leading to an accidental reverse position. - **Using day orders** for an overnight position, leaving the OCO pair to expire at the close. - **Forgetting to cancel** an OCO pair after closing the position manually. Most platforms cancel linked orders automatically, but not all. ## Frequently asked questions ### What does OCO mean in trading? One cancels other: two linked orders where the fill of one cancels the other automatically. ### What is the difference between OCO and a bracket order? OCO is the pair of linked orders. A bracket is an entry that, once filled, activates an OCO pair of exits. ### Are OCO orders available for crypto? Yes. Many major crypto exchanges offer OCO orders, usually combining a limit order with a stop-limit order. ## Sources - Wikipedia, [Order (exchange)](https://en.wikipedia.org/wiki/Order_%28exchange%29) ## Continue learning - Next lesson: [OTO and OTOCO Orders](https://learn.tradelabsai.com/orders/oto-and-otoco-orders/) - Previous lesson: [Bracket Orders](https://learn.tradelabsai.com/orders/bracket-orders/) - Related: [Bracket Orders](https://learn.tradelabsai.com/orders/bracket-orders/): A bracket order attaches a stop loss and a profit target to an entry, and cancels one when the other fills. Learn how to set one up, with a worked example. - Related: [OTO and OTOCO Orders](https://learn.tradelabsai.com/orders/oto-and-otoco-orders/): OTO orders send a second order only after the first fills; OTOCO adds an OCO pair of exits. Learn how these conditional orders automate a full trade plan. - Related: [Stop Orders](https://learn.tradelabsai.com/orders/stop-orders/): A stop order becomes a market order once a trigger price trades. Learn how stop losses and buy stops work, where to place them and why stops can slip. - Related: [Limit Orders](https://learn.tradelabsai.com/orders/limit-orders/): A limit order trades only at your price or better. Learn how buy and sell limits work, why they may not fill, queue priority and how to set a smart limit price. - Related: [Breakout Trading](https://learn.tradelabsai.com/strategies/breakout-trading/): Breakout trading enters when price moves out of a range or past a key level. Learn setups, volume and volatility filters, stop placement and how to handle fakeouts.