Forex Trading Order Cancels Other (OCO)

OCO Type Orders Explained. Imagine there is a trade setup that you want to enter, and you’re willing to enter at two different prices – but, at the same time, you’re only willing to allow one of those to be filled.

For more info on how we might use your data, see our privacy notice and access policy and privacy website. A stop order or stop-loss order is executed when a security reaches a pre-determined price as a market order. Gary Burton - Forex Analyst. A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. An entry order is one that is used to enter a trade at a specified price level.

BREAKING DOWN 'One-Cancels-the-Other Order - (OCO)'

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You can manage you subscriptions by following the link in the footer of each email you will receive. Every trader should have a variety of strategies available to apply to the markets. Having multiple strategies may seem like a complication at first, but having choices can allow traders to react quickly and be able to trade a variety of market conditions. Today we will start a new strategy series by reviewing how to trade inside bars. Inside bars are easily identified pricing patterns that can be found on virtually any chart.

The pattern itself requires some simple technical analysis, which includes identifying a series of highs and lows on a daily chart. Our analysis begins by pinpointing the previous bars high and low. Currently the high for the previous daily candle resides at 1.

If price remains inside both values, our inside bar will be confirmed! So now that you have identified an inside bar, the next question is when and how to trade them.

First off, trading inside bars lends itself to trading breakouts. The idea is that the identified highs and lows mentioned above, will also act as support and resistance values.

If price breaks above resistance, traders will look to buy the market. Conversely if price falls below support, traders will look to sell. One way to setup for a n inside bar breakout is through the use of an OCO order. An OCO order allows us to set a buy and sell entry order at the same time. Using an OCO entry is beneficial to traders , as it allows them to be ready for a breakout in ei ther direction.

Regardless of the markets direction, an entry will be pending execution! When either the stop or limit price is reached and the order executed, the other order automatically gets canceled.

Experienced traders use OCO orders to mitigate risk and to enter the market. These orders could either be day orders or good-till-canceled orders. Traders can use OCO orders to trade retracements and breakouts. If a trader wanted to trade a break above resistance or below support, they could place an OCO order that uses a buy stop and sell stop to enter the market. Once the price breaks above resistance or below support, a trade is executed and the corresponding stop order is canceled.

If OCO orders are used to enter the market, the trader needs to manually place a stop loss order once the trade gets executed.

For further reading about order types, see: This will only usually occur during high volatility such as during news events. However, the panel will be fast to react, so with duplicate trade triggers, you will mostly likely just pay the cost of the spread. So you should have a good understanding of what OCO means now in trading, how it works and understand my enhanced version OCG.

Therefore we need external software to manage this for us… especially with Metatrader. I hope you enjoyed the tutorial, and if you decide to use my trade panel — then I hope it helps bring much success into your trading.

Follow the download button below if you would like to try them out: Hi guys, this panel is available as part of the War Room: