The OCO Order — When One Fills, the Other Is Canceled
You want to set both a stop-loss line and a target price, but wish that if one fills, the other is automatically erased? That is exactly the OCO order.
What OCO Is
An OCO (One-Cancels-the-Other) order places two orders at the same time, and when one of them fills, the other is automatically canceled.
The most common combination is 'a stop order for a stop-loss plus a limit order for a take-profit.' If the target price is hit and take-profit fills, the stop-loss order disappears, and conversely, if the stop-loss fills, the take-profit order disappears.
It prevents the mistake of placing two orders separately and having only one fill while the other remains, resulting in an unwanted double trade.
Why Use It — Automated Risk Management
The advantage of OCO is that 'you set it once and manage stop-loss and take-profit at the same time.'
1. You do not have to keep watching the screen. 2. Setting a target price on the upside and a stop price on the downside together reduces emotional intervention. 3. When one executes, the other is automatically canceled, preventing the accident of a duplicate order remaining on a position you have already closed.
Many brokerage and exchange platforms offer this feature.
Limits and Cautions
OCO is ultimately a combination of a stop and a limit, so it inherits their limits as is.
- If the stop-loss side is a stop (market), slippage occurs in a plunge; if it is a stop-limit, there is a non-execution risk. - The take-profit side's limit may fill only partially if volume piles up even when the target price is hit. - OCO support methods and order types differ by platform, so you should check the actual behavior in advance.
OCO is only a convenient management tool; it does not guarantee profit or loss itself.
This article does not present any specific stop-loss or target price. OCO is merely a way to bundle and automate two orders; the slippage and non-execution risks of each order remain as they are.
よくある質問
Q. Which two orders does an OCO order bundle?
Usually it bundles a downside stop-loss (stop) and an upside take-profit (limit). When one of the two fills first, the other is automatically canceled, preventing an order from remaining on a position you have already closed.
Q. If I place an OCO, am I protected from losses?
No. OCO only manages stop-loss and take-profit automatically; risks such as slippage or non-execution on the stop-loss side remain the same. It should be understood not as a tool that guarantees outcomes but as 'a tool that reduces duplicate-order mistakes.'
関連ページ
📋 結果は過去のデータに基づくものです。過去のリターンは将来のリターンを保証しません。
📋 本サービスは投資アドバイスではなく、投資を理解するための教育目的で提供されています。