What Is an OCO (One Cancels Other) Order in TradersPost?
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OCO (One Cancels Other) orders allow traders to set stop-loss and take-profit exits that automatically cancel each other. TradersPost supports OCO orders for brokers that allow them, helping automate risk management.
How Do OCO Orders Work?
An OCO (One Cancels Other) order is a type of conditional order setup where two exit orders—a stop-loss order and a take-profit order—are linked together. When one of these orders is executed, the other is automatically canceled.
In a typical OCO setup:
1. A trader enters a position.
2. Two exit orders are placed:
• A stop-loss order to limit downside risk.
• A take-profit order to lock in gains.
3. If the take-profit order is filled, the stop-loss is canceled. If the stop-loss is hit, the take-profit order is canceled.
This setup ensures that once a position is exited, there is no lingering opposite order that could accidentally trigger an unwanted trade.
How TradersPost Handles OCO Orders
In TradersPost, an OCO setup consists of three linked orders:
• The entry order (market or limit).
• Two exit orders (stop-loss and take-profit), conditionally linked to cancel each other.
Not all brokers support OCO orders natively. If a broker does not allow OCO orders, traders may need to manually manage their stop-loss and take-profit exits.
Why Use OCO Orders?
• Automated Risk Management – Ensures either a profit target or stop-loss is executed, reducing manual intervention.
• Prevents Accidental Orders – Stops an unwanted exit order from being triggered after a trade has closed.
• Improves Execution Efficiency – Traders don’t need to constantly monitor their positions.
Conclusion
OCO orders are a crucial tool for automated trading, allowing traders to set stop-loss and take-profit orders that automatically cancel each other when one is executed. TradersPost supports this functionality for brokers that allow it, helping traders manage their risk efficiently.