One-Cancels-the-Other Order (OCO)
An order stipulating that if one part of the order is executed, then the other part is automatically canceled. Investopedia Says:
An investor with limited funds may place an order to buy both stocks and bonds and specify that it's a "one-cancels-the-other-order." In other words, if the market favors stocks and they are bought, the order to buy bonds will be canceled. Conversely, if the market suggests bonds are the way to go, the order will be to buy bonds and the order to buy stocks will be canceled. Related Terms:
Bond
Order
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