Contingent Orders

Contingent Orders

Contingent orders combine several types of orders and are used to execute against a specific trading strategy. Contingent orders require that one of the orders is triggered before the other order becomes activated.

One Cancels the Other (OCO)

An OCO is part of an if/then scenario. An if/then the order is a set of two orders with the stipulation that if the first order (known as the “if” order) is executed, the second-order (the “then” order) becomes an active, unassociated, single order. Unassociated orders are not attached to a trade and act independently of any position updates. In cases where the “if” order does not execute, the “then” single order will remain dormant and will not be executed when the market reaches the specified rate. 

If/Then OCO

An if/then OCO provides that if the first order (the “if” order) is executed, the second-order (the “then” order) becomes an active unassociated one-cancels-other (OCO) order. Remember, unassociated orders are not attached to a trade and act independently of any position updates. As with a regular OCO order, the execution of either one of the two “then” orders automatically cancels the other.

In cases where the “if” single order does not execute, the “then” OCO order will remain dormant and will not be executed when the market reaches the specified rate.

Good till Canceled (GTC)

GTC is an order to buy or sell at a specified price will remain open until it is filled or canceled

Good for the Day (GFD)

End of Day – an order to buy or sell at a specified price will remain open until the end of the trading day, typically at 5 pm/17:00 New York

Anton Kovacic
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