Interested in learning how to place both a stop and a limit order on an underlying stock position simultaneously? Furthermore are you interested in learning how to enter these orders with a designation where if one is triggered the other is automatically canceled?
Welcome to tradeMONSTER.com video trading podcast. This is Episode 15, “Entering an OCO order”, presented by tradeMONSTER’s own Travis McGhee. In this video I will demonstrate how to enter a one-cancels-the-other order or what is commonly referred to as an OCO order, using the tradeMONSTER trading platform. For the purpose of this demonstration I am going to use a long stock0:40position in IBM. So basically what an OCO order is, is an order that stipulates if one part of the order is executed then the other part is automatically canceled. So for example with IBM where I am currently long 300 shares. Let’s say that I want to put a sell limit order in above the market at $125, I can simultaneously put in a stop loss order below the market at let’s say $120. So if my sell limit triggered at $125 it automatically cancels my stop loss and vice versa if the market were to drop while I am away from my computer and it triggers my stop loss, my sell limit above the market is automatically canceled. So what I want to do is left click on the streaming quote and it is going to direct me to my action screen where I will be able to enter my sell order. So lets left click on sell. And it directs us to our order entry ticket. Let’s change this to 300 and we are going to go ahead and enter our limit here. So lets put in $125, because that is where we want to enter our sell limit. And then what we need to do is save this trade. So we are going to save that. We are going to go back to the streaming quote. I want to left click and it directs back to my action screen. So now I need to left click on sell again and what we are going to do is enter our stop loss order. So I change this to 300. I want to change it from a limit to a stop. And here we now need to change trade automation to one-cancels-the-other. Now this is going to automatically direct us to the other leg of our order. So we saved earlier selling 300 shares at $125 limit. Now this is our limit order that we have above the market. And this is going to pair it up with our stop loss order below the market. And then you want to make sure that it is clicked on cancel the other order. So if one is triggered the other order is automatically canceled. I left click on confirm. And it sends it away to the market. And now I have a limit order above the market while at the same time entering a stop loss order below the market, thus creating a one-cancels-the-other order on the tradeMONSTER platform. Go to tradeMONSTER.com to get access to all of our tools and educational resources for proactive investors like you. Every brokerage account gets free access to our paper trading practice platform!
About: tradeMONSTER™ is the first online broker to deploy a streaming desktop-like trading experience in a web-browser. Differentiators of other online brokerage firms include a completely customizable trading platform, real-time streaming quotes and charts for accounts accounts including paperTRADE, one click order form from anywhere on the trading application and unique trading tools like spreadMAKER, Exit Plan, tradeLAB and strategySEEK.