Definition of OCO Order
What is the definition of an "OCO Order"? What does the term "OCO Order" mean?
"OCO" in "OCO Order" stands for "One Cancels Other".
![Definition of OCO Order - Financial Dictionary - Stock Market lingo](https://www.davemanuel.com/images/def_oco_order.gif)
Let's say that you want to sell your shares if one of two things happens:
a) MSFT hits $30/share
b) MSFT hits $20/share
In the case of a), you are taking profits, while in the case of b), you are selling for a loss.
In this case, you can set a OCO Order. Your OCO Order would consist of two different orders:
1) Sell 100 shares of MSFT if it hits $30
2) Sell 100 shares of MSFT if it hits $20
If either order executes, the other order will be cancelled. Hence the term, "One Cancels Other".
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