Everything you Need to Know About OCO Orders: KuCoin Tutorial

This way you’ll make sure you’re prepared for several scenarios, and that the trade that best suits the market conditions will be executed. Indicates you want your stop order to become a market order once a specific activation price has been reached. There is no guarantee that the execution price will be equal to or near the activation price.

• Stop loss orders do not guarantee the execution price you will receive and have additional risks that may be compounded in periods of market volatility.
• OCO orders help traders mitigate risk, take profit as well as enter the market in cryptocurrency trading.
• OCO feature is a simple yet powerful tool, which allows users to trade in a safe and versatile manner.
• However, the primary thing to pay heed to here is that only one can be executed while the other gets canceled.

Conversely, traders use stop-entry orders to initiate buy orders at a preset value above the current market price. This is suitable in periods when the asset is experiencing an uptrend. For instance, if the stock price goes up to $55, the limit order will execute, and the stop order will automatically be canceled. On the other hand, if the price falls below $45, the stop order will execute, and the limit order will automatically be canceled.

Trigger Price:

Usually, an OCO order is a combination of stop and limit orders. It’s executed automatically when the price reaches the levels set by the trader. For instance, if a crypto coin is trading in a range between $100 and $120, a trader could place an OCO order with a buy stop just above $120, and a stop sell just below $100. Once the price breaks above or below the set limit, a trade will be executed and the second one will be canceled.

Now someone placed an OCO order with Taking Profit at $110 and Stop Loss at $90. If the market hits $110 then, the Take Profit option will be executed and at the same time, the Stop Loss order will be canceled. And, setting an OCO order will be the solution to all such risks. We all know that crypto trading has become the hottest trading market these days than gold, oil, or even stock market trading. There is no doubt that this is an exciting market for traders across the globe, but unfortunately, success doesn’t happen as easily as it seems. Bearing this in mind, it is imperative for traders to opt for an exchange platform that caters to users with their current level of trading experience.

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Orders placed by other means will have additional transaction costs. TrailingCrypto is one such trading platform that provides unified exchanges and effective trading tools, and advanced strategies to help traders maximize their profits. These orders let investors buy an asset and simultaneously create two sell orders. If one of the orders is triggered, the second one will be canceled automatically. 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.

Investing involves risks, including the loss of principal invested. Remember, the Monitor tab is where we’re going to go to monitor all of our positions and monitor all of our trades. In this section, you will find articles and videos that go over the various order types that can be found within the thinkorswim platform. Click the links above for articles or the playlist below for videos.

This is very useful, for example, when the price of an asset oscillates a lot within a price range. If the trader observes this behavior, he can create such orders to enter at the lowest price, and stay in the range. In addition, you can exit when the price exceeds one point, taking the profits of the operation.

Retracement Strategy

Once activated, they compete with other incoming market orders. Two orders are placed simultaneously; if one order is executed, the other is canceled. The first order entered in the Order Entry screen triggers a series of up to seven more orders that are not filled until the next order in the queue is filled. If either of these secondary orders executes, the other is automatically canceled.

The first order in the Order Entry screen triggers an OCO order (“one cancels other”—see below). When the order is filled, it triggers an OCO for your profit stop and stop-loss. As we mentioned above, the OCO order helps investors reduce risks. As the stock market is highly volatile, especially in times of meaningful news or economic releases, the investor can place an OCO order.

With a Stop limit order in place, traders have the ability to place the minimum amount of profit they’re willing to walk away with and also the maximum amount they’re ready to lose. This typically involves combining a limit order with a stop limit order at the same instant; however, only one is allowed to be fulfilled. Hence, immediately after one order is executed, the other one is automatically canceled. It is important that traders come up with strategies to ensure constant profitability. And an OCO order remains to be a solid strategy to analyze a trading opportunity technically and fundamentally.

When orders are placed for retirement accounts, a price-reasonability check helps prevent both OCO orders from executing in a fast market. You can find your open position in the Advanced Orders tab at the bottom of the KuCoin trading page, where you can monitor the position, or cancel it. The affiliate programme is not permitted in Spain for the commercialisation Top 10 commodities of investment services and client acquisitions by unauthorised third parties. Each of the programs will have specific steps for installation. If you have doubts about setting an Expert Advisor program, you can contact the support team of your broker. A type of algorithmic trading that involves the execution of a large number of orders in fractions of a sec…

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A trader may wish to use an OCO Order for trading in the process of retracements and price breaks. One thing to note is that your assets will not be locked unless your order is triggered. If your assets are insufficient by the time you meet the trigger price, your order will fail. Once your order is triggered, however, your assets will be locked. Seasoned traders strategically place stop-limit orders by considering resistance and support levels and the asset’s volatility. The OCO order isn’t set by default in the MetaTrader platform.

• An OCO order creates the necessary balance to optimize trading outcomes.
• Experienced traders generally use OCO orders to mitigate risks and to enter the market.
• For example, if a stock is trading in a range between $20 and $22, a trader could place an OCO order with a buy stop just above $22 and a sell stop just below $20.
• With a Stop limit order in place, traders have the ability to place the minimum amount of profit they’re willing to walk away with and also the maximum amount they’re ready to lose.
• Such platforms allow users to select the number of order types they want to run simultaneously.

An OCO order creates the necessary balance to optimize trading outcomes. It caters to the possibility that a trade can go either way. This way, you eliminate trading on https://investmentsanalysis.info/ an emotional and biased perspective. Once you place your OCO order, your open position will appear in the Advanced orders tab where you’re free to monitor or cancel it.

Level Up Your Medium Game

Experienced traders generally use OCO orders to mitigate risks and to enter the market. This is a conditional order for a pair of orders in which the execution of one order cancels the other. OCO order (Order Cancels the Other Order) or (Order Cancels Order) is a type of conditional order, which is often placed with a pair of gain and loss exit orders. If one of the orders is fully or partially fulfilled, the other one gets canceled automatically. An OCO order often combines a stop order with a limit order on an automated trading platform like TrailingCrypto. Anyone can place traders but managing them is more difficult.

The second is that if one of the orders is cancelled, the second one is deleted as well. There is also the Order-Sends-Order command, but it works the opposite way. It triggers but does not cancel the second order, which is very important to note. Select OCO order in the drop-down box, then specify the limit price to be $27 USDT and the stop price $29.50 USDT, and stop limit price to be $30 USDT, with the quantity as 10. The gain order here will be the limit order which goes directly to the exchange where it’s held. Prices for Bitcoin and other cryptocurrencies are moving up and down with each passing hour.

Thinkorswim OCO Trade Example

You can find plenty of Expert Advisor programs that help place OCO orders. An Expert Advisor is a process to set a position based on specific rules. To choose the perfect one, you need to try several or simply read reviews. Stop orders are presented by buy stop and sell stop orders. By placing them, a trader expects the price to break at a predetermined level to open the trade.