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One cancels the other order (OCO) definition

One cancels the other order (OCO)

A designation for two orders whereby if one part of the two orders is executed, then the other is automatically cancelled.

You might place this kind of order when you expect a big move in the market but can’t decide whether it will go up or down. The OCO ensures at least one of your trades will open and move in the direction of the next move.

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