OTO and OTOCO Orders

Conditional orders let you build a trade in advance so the platform executes each step only when the previous one happens. Two common versions are OTO (one triggers other) and OTOCO (one triggers one cancels other). They are the building blocks behind bracket orders and are useful whenever you want an exit to exist only after an entry actually fills.

OTO: one triggers other#

An OTO order has a primary order and a secondary order. The secondary order is sent to the market only after the primary order fills.

Without OTO, you would have to wait and place the stop yourself after the fill, which is risky if you are away from the screen.

OTOCO: one triggers one cancels other#

OTOCO adds a second exit: the primary order triggers an OCO pair. This is the full bracket structure:

See Bracket Orders for a worked OTOCO trade and OCO Orders for how the OCO part works.

Why use conditional orders#

• No unprotected moments. The stop exists from the instant you have a position.
• No phantom orders. Exits do not sit in the market before you own anything, where they could open an accidental position.
• Plan in advance. You can set up trades the night before and let them run during the day.
• Discipline. Decisions are made before the trade, not during it.

Other conditional order variations#

Platforms offer many variations on the same idea:

• Multiple targets: one entry triggers several limit exits at different prices plus a stop that shrinks as targets fill.
• Conditional on another symbol: an order that is sent only if another market reaches a level, for example buying a stock if an index future rises above a price.
• Time conditions: orders activated or cancelled at a set time.

Names and capabilities vary widely between brokers. Check your platform's documentation and test with small size first.

A multiple target example#

This kind of structure turns a written plan with partial profits into orders that run on their own. See Scaling Out and Partial Profits.

Practical checks#

1. Time in force on every leg. If the entry is GTC but the exits are day orders, your protection disappears at the close. See Time in Force: Day, GTC and GTD Orders.
2. Partial fills. Confirm that exit sizes match the filled quantity.
3. Server side execution. Prefer conditional orders held by the broker, not only by your local software.
4. Modifications. Know how to adjust the stop or target after entry without breaking the link between them.

Frequently asked questions#

What is an OTO order?#

One triggers other: a primary order that, when filled, automatically sends a second order such as a stop loss.

What is the difference between OTO and OTOCO?#

OTO triggers a single secondary order. OTOCO triggers two secondary orders linked as one cancels other, typically a stop and a target.

Is an OTOCO the same as a bracket order?#

In practice, yes. A bracket order is the common name for an entry with an attached OCO stop and target.

Sources#

• Wikipedia, Order (exchange)