How to Create One-Cancels-Other Orders on thinkorswim

TL;DR

To create a One-Cancels-Other (OCO) order on thinkorswim, select 'Buy custom' under the Trade tab, then choose 'with OCO Bracket.' Set your limit and stop prices, adjusting them to 'Good Till Canceled' to keep the orders active beyond one trading day. This setup helps manage risk by defining profit targets and stop-loss limits simultaneously.

Transcript

Hello, traders. I'm Anthony Panzeca. And I'm going to show you how to create a one-cancels-other order, also known as an OCO, on the thinkorswim® platform. Let's just jump right into it. An OCO is a pair of orders that are linked, meaning if one order executes, then the other order is automatically canceled. Specifically, an OCO order combines a st... Read More

Key Insights

• 🪈 OCO orders link stop and limit orders, automating trading strategies.
• 😫 Setting profit targets and stop losses simultaneously helps manage risk.
• 👻 Customizing OCO orders on the thinkorswim platform allows for flexible trading strategies.
• 💄 Utilizing OCO orders can streamline trade management and decision-making processes.
• 📑 Monitoring OCO orders in the Trade tab and adjusting them in the Monitor tab offers control over trades.
• 🪈 Leveraging chart features on thinkorswim enables visual adjustments to OCO orders.
• 🪈 OCO orders are essential tools for efficient trade execution and risk management.

Questions & Answers

Q: What is an OCO order, and how does it function?

An OCO order, or One-Cancels-Other, combines a stop order with a limit order, wherein if one order executes, the other gets canceled automatically.

Q: How can traders set profit targets and stop-loss orders simultaneously?

Traders can set profit targets and stop-loss orders simultaneously by creating linked OCO orders on platforms like thinkorswim.

Q: What are the benefits of using OCO orders in trading?

OCO orders help traders manage risk effectively by setting predefined profit targets and stop-loss levels simultaneously, providing a structured approach to trading.

Q: How can traders customize OCO orders for specific trades?

Traders can customize OCO orders by setting their desired quantity, price levels for profit targets and stop losses, and selecting order duration on platforms like thinkorswim.

Summary & Key Takeaways

• An OCO order on thinkorswim links two orders, where if one executes, the other cancels, combining a stop order with a limit order.

• By setting profit targets and stop-loss orders simultaneously, traders can manage risk and potential gains efficiently.

• The tutorial guides traders through creating and customizing OCO orders step by step on the thinkorswim platform.