OCO orders: do you use one-cancels-other?
An OCO pairs a stop and a target so filling one cancels the other, and the same mechanism can bracket entries. It's automation's simplest gift, and plenty of traders never use it.
Do you?
- the OCO setups you run
- how they help with news and gaps
- where your platform's OCO support falls short
The order types guide explains the mechanics.
Background: Market, limit and stop orders: which order type to use
The order types on a trading platform decide when and at what price you enter or exit. What each one does, and the mistakes that cost traders money.
What is the difference between a buy limit and a buy stop?
A buy limit is placed below the current price to buy on a dip. A buy stop is placed above the current price to buy if the price breaks higher.
Does a stop-loss guarantee the exit price?
No. A standard stop-loss becomes a market order when triggered and can fill beyond its level in a gap or fast market. Guaranteed stops, where offered, cost extra.
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