OTO (One Cancels Other)
Co-Founder•1 min read
A One Cancels Other (OTO) order is a linked pair of instructions where the execution of one order automatically cancels the other.
It’s commonly used in FX and trading platforms to manage risk and lock in outcomes — typically pairing a take-profit order with a stop-loss order. This ensures that when one target is reached, the opposing order is cancelled to prevent unwanted trades.
Example:
A trader buys GBP/USD at 1.2500 and sets two linked orders:
Take-profit: sell at 1.2600
Stop-loss: sell at 1.2400
If the rate hits 1.2600 and the take-profit executes, the stop-loss is automatically cancelled.
Used in:
FX trading, derivatives, and automated risk-management strategies.