How to Place OCO Orders

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Video Transcript:

Hello, traders. Welcome to the thinkorswim tutorial, the fourth module, trading. In this lesson, we’re going to learn how to save order templates for OCO orders.

OCO orders on thinkorswim platform

All right, so the first thing we want to go is we went to go to the Trade tab. And you want to write down the, or enter the symbol that you want to make the OCO order for. Right now you can see that we are looking at the E-Mini S&P 500, our futures contract and what you want to do is right here, hover your mouse over the bid or the ask and right click on it. Then you are going to go to Buy Custom or Sell Custom, in this case we’re going to go to Buy Custom with OCO bracket. And as you can see, it automatically shows an OCO bracket with the entry limit order, the take profit order and the stop loss order. What we want to do is we want to modify this order and save it as a template for future orders on the E-Mini S&P 500.

OCO orders thinkorswim

And the way we’re going to do that is we are going to go and click on Market, because we want to use this OCO order for a market order. This means that every time we use, we are entering the market with this template it would automatically give us the stop loss, a determined stop loss in points and a determined take profit in point. Now, we already have the first order in place which is a market order on the E-Mini S&P 500 for one contract. You can also modify the number of contracts but remember if you modify the number of contracts on the first order, you have to modify it on the second and third order.

OCO order thinkorswim

Now, right now we are going to change or modify the limit order. You are going to choose CTRG and then you are going to choose the value offset with this right here, with this button. This is the percent offset, the value offset and the tick offset. We want a value offset of 10 points and we are going to do the same for our stop loss order. We want a value offset of five points. Now remember because this is a buy order, we want the value offset to be plus 10 points from our entry and the stop loss minus 5 points from our entry.

Then you are going to click this icon, this green, this icon right here, and this way you are going to be able to save the custom order template. Now, you can name it whatever you want, I’m going to name it one contract and then with a 5 point stop loss and a 10 point limit, okay? So that’s the name of my OCO bracket.

Now, what I want to do now is create another OCO bracket for limit orders, okay? This is a limit order with the same stop loss and the same target. The reason that we want to create a limit or a limit OCO order too, is because I’m not going to be entering at market every time. You’re supposed to limit orders from my trade so I want to be able to have an OCO bracket for that one, too. So I’m going to save it and I’m going to name this one, one limit contract with a 10 point target and a 5 point stop loss. So you can name it whatever you want but and I’m naming them with very upfront names because I want to be able to know what I’m doing when I’m in the charts.

Now, this is the E-Mini S&P 500 chart, one minute chart and I want to be able to buy this market when price hits this level, okay? So I’m going to place my mouse or my crosshair tool at the level I want my OCO order at and I’m going to right-click it then buy custom, and one limit contract 10 target, 10 point target and 5 point stop loss.

And as you can see I have my bracket order, my OCO bracket order and you can of course, the good thing about this OCO bracket it’s that they are customizable once you place the order. For instance, if you want to move your stops a little higher you can do so by moving them just below this low, and your targets just right here above these highs. This will give you a customizable OCO entry, once the price hits your limit order, okay? If you choose to trade with a market OCO order, or the first order that we saved, you can do so but it will not show on the charts because as you know…well, field orders don’t show on thinkorswim charts.

Now you can do this for as many as financial instruments you want and you can do this with one or two targets if you are trading more than one contract on any futures market.

Adam

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Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.

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