A one-cancels-the-other (OCO) order is a type of order in forex trading that helps traders to manage their trades efficiently. This order type allows traders to enter two orders simultaneously, where one is the primary order and the other is a secondary order that is triggered only when the primary order is executed. This article will explain how to change an OCO order in forex.
Step 1: Understanding OCO orders
Before we dive into how to change OCO orders, let’s understand what they are. An OCO order consists of two orders, a buy limit and a sell limit, or a buy stop and a sell stop order. These two orders are placed simultaneously, and when one of them is executed, the other is canceled automatically. This order type is used to manage risk and protect profits.
For example, let’s say a trader is long on EUR/USD at 1.2000 and wants to protect their profits by setting a stop-loss order at 1.1950. At the same time, they want to take profit at 1.2100. They can place an OCO order with a buy stop order at 1.2100 and a sell stop order at 1.1950. If the price reaches 1.2100, the buy stop order is executed, and the sell stop order is canceled. If the price drops to 1.1950, the sell stop order is executed, and the buy stop order is canceled.
Step 2: Accessing your OCO orders
To change an OCO order, you need to access it first. You can do this by logging into your forex trading platform and navigating to the “orders” tab. Here, you will see a list of all your open orders, including OCO orders.
Step 3: Selecting the OCO order you want to change
Once you access your orders, you need to select the OCO order you want to change. Click on the order to highlight it. This will display all the details of the order, including the currency pair, the order type, the entry price, the stop-loss, the take-profit, and the order size.
Step 4: Changing the order details
Now that you have selected the OCO order you want to change, you can modify its details. You can change the entry price, the stop-loss, the take-profit, or the order size. To do this, click on the order and make the necessary changes in the order ticket that appears.
Step 5: Submitting the modified order
After making the changes, you need to submit the modified order. Check that all the details are correct and click on the “submit” button. The order will be sent to the market, and the changes will take effect immediately.
Step 6: Monitoring the order
Once you have submitted the modified order, you need to monitor it closely. Keep an eye on the market to see if the order is executed or canceled. If the order is executed, you will see a new trade in your account history. If the order is canceled, you will see a notification in your trading platform.
Conclusion
Changing an OCO order in forex is a simple process that can be done in a few steps. Access your orders, select the OCO order you want to change, modify the order details, submit the modified order, and monitor the order. OCO orders are a useful tool for managing risk and protecting profits in forex trading. By understanding how to change them, you can adapt your trading strategy to changing market conditions and stay ahead of the game.
