Thinkorswim is a popular trading platform that offers a range of tools and features for forex traders. One of the most useful tools available on the platform is the OCO (One Cancels the Other) order type. This order type can help forex traders to manage their risk and maximize their profits. In this article, we will explain what OCO orders are and how to place them in thinkorswim.
What is an OCO Order?
An OCO order is a type of order that allows traders to place two orders at the same time. The orders are linked together so that if one order is executed, the other order is automatically canceled. This type of order is useful for traders who want to both protect their profits and limit their losses.
For example, let’s say you are trading the EUR/USD currency pair and you have a long position open. You could place an OCO order with a profit target and a stop loss. If the price reaches your profit target, the platform will automatically close your position and cancel the stop loss order. Alternatively, if the price reaches your stop loss order, the platform will automatically close your position and cancel the profit target order.
How to Place an OCO Order in Thinkorswim
To place an OCO order in thinkorswim, follow these steps:
Step 1: Open the Trade Tab
Once you have logged in to your thinkorswim account, navigate to the Trade tab. This is where you can place trades and manage your open positions.
Step 2: Select the Currency Pair
Select the currency pair that you want to trade by typing the symbol into the search box in the upper left corner of the Trade tab.
Step 3: Choose the Order Type
Click on the Order Type drop-down menu and select OCO. This will allow you to place two orders at the same time.
Step 4: Set the Buy or Sell Order
Next, choose whether you want to buy or sell the currency pair. You can do this by clicking on the Buy or Sell button on the Trade tab.
Step 5: Set the Stop Loss Order
Now it’s time to set the stop loss order. Click on the gear icon next to the Stop Loss field to open the Stop Loss Options menu. Here, you can set the stop loss price, the order type (limit or market), and the duration of the order.
Step 6: Set the Profit Target Order
After you have set the stop loss order, it’s time to set the profit target order. Click on the gear icon next to the Profit Target field to open the Profit Target Options menu. Here, you can set the profit target price, the order type (limit or market), and the duration of the order.
Step 7: Review and Submit the Order
Once you have set both the stop loss and profit target orders, review your order to ensure that everything is correct. If you are happy with your order, click the Submit button to send it to the market.
Conclusion
Placing an OCO order in thinkorswim is a simple process that can help forex traders to manage their risk and maximize their profits. By setting both a stop loss and a profit target order, traders can protect their capital while still allowing for potential gains. With thinkorswim’s intuitive platform and range of tools, traders can easily place OCO orders and other types of orders to meet their trading needs.
