You are here: Educational Videos » Futures » Stop and Limit Q-OCO

Track 'n Trade LIVE Futures

How to Place Stop and Limit "Quick" Q-OCO Orders

Video Transcript

Now that I've shown you a Market order, let's come in and let me show you a Stop order. Very simply, we have a Stop order set, preset at for us at Stop: 25, with a 45: Limit. So we're going to come in here, and we're going to place a Q-OCO Stop order. When you click the button, you'll notice it loads the cursor. The cursor has an arrow on it. If I hold down the left mouse button, you'll notice that it automatically places all three orders on the screen, and I can drag that Stop order above, or below the market. Once again, a Stop order above the market is a BUY Stop, Stop order below the market is a SELL Stop. Below the market it's red, above the market, it is green. But you'll notice that as I do that, I'm also moving or modifying my Limit order, my OCO Limit order and my Stop order, or my OCO Stop order.

Let's say I figure this market is going to turn around and drop or continue higher. Let's say it's going to continue higher, I would just place my Stop order above the market, release the mouse button. Of course, if I wanted to I could say Don't Show Again, and I could be One-Click Order option capabilities on the OCO button as well. But I'm going to go ahead and hit OK. You'll notice that I have a Stop order, the Stop order at this point is not filled. It has not yet been filled by the market. Therefore, the Q-OCO Limit order and the Q-OCO Stop order are not active and if I come down into my Accounting window, you'll see that the only order that appears is the Stop order that was placed above the market. It's the only active order, you'll see that in my Pending orders in the Accounting window. The other two are not pending, because they have not yet been activated. They were placed through the market, on the same ticket, but because they are OCO orders, and they are dependent upon the Master order, they will not become active until the Master order becomes filled. Once the Master order becomes filled, these two orders will become filled or become active, and you will see them in the Accounting window appear.

In this example the market must rally, it must fill the Stop order and then it must continue to rally, to the blue point above the blue order, which we can change to any price level we want, before it fills that order and then automatically cancels the Stop order on the opposing side. Of course, if the market turns around and drops, then comes down and touches this Stop order before it fills the Master order, what happens? Nothing! Nothing happens because this order is not yet active and will not become active to the market until the green Master order is filled. So that's an important feature of the Stop order and the OCO orders being placed simultaneously. This order is not active, therefore until the Master order is filled, if the market turns around and touches this price first, it will not fill this Stop order down here.

Okay, now we can do the same with the Limit order. Let's come in here and we'll place a Limit order, simply by clicking on the Q-OCO 4 button, which is preset to the limit of 25: Stop and 45: Limit. We go ahead and hit that. Again, it's going to be basically the same as a Stop, only the order is just going to be just the opposite with the rules, because a Buy limit must be below the Market, then it's green. A Sell limit must be above the market and it is red. You'll notice that the Stop order and the Limit order are on the opposing sides.

Let's place the order here, we release the mouse button. It gives us our Order Confirmation button. We go ahead and hit Okay. To activate the two OCO orders, the market must go up and fill the Limit order before it then turns around and drops to be profitable and comes down and touches our Limit order. This is our profit taking Limit order, this is our Stop order. Again, if the market comes down and touches this Limit order price before it fills the Master order, the Master Limit order, this order will not fill.

Questions: Call 1-800-862-7193, Ext. 2
Note: All data/software services are recurring