One cancels other

One cancels other is a combination of two set orders but only one would be executed when met and the other one will be cancelled. This technique can be used as insurance when your plan A to go long didn’t happen but instead the price of the currency dropped triggering your plan B order to go short instead. It can also be used to place two buy or two sell orders. For example, when the current market price of the USD/JPY is at 115.50 and you plan on placing a long position just below the current market price. Your first and primary order is a limit to go long on USD/JPY at 115.20 and your second order is a stop limit ahead of the current market price at 115.60. Sometimes the currency pair doesn’t bounce back to its resistance level and just shoots higher. When this happens your original entry point would not be met at 115.20 but instead it will hit your second order which is at 115.60, this would automatically cancel your primary order at 115.20 since the position has already been established.