Hello, traders.
I'm Anthony [? Panzica. ?] And I'm
going to show you how to create a one-cancels-other order, also
known as an OCO, on the thinkorswim platform.
Let's just jump right into it.
And OCO is a pair of orders that are linked,
meaning if one order executes, then the other order
is automatically canceled.
Specifically, an OCO order combines a stop order
with a limit order.
Traders can place these orders simultaneously
to define a profit target, while simultaneously
placing a stop loss to potentially limit losses.
So here's what you're going to do.
You're going to go over to the Trade tab--
make sure you're under All Products--
type in your symbol.
For today's example, we're going to use Apple.
You're going to go over to the price.
When you hover over price, you're
going to see that it says Symbol Menu.
Simply left click, scroll down, hover over Buy Custom,
click on with OCO Bracket.
Something interesting happens in the bottom of the screen.
The order ticket comes up to buy 100 Apple at a limit price.
And then a limit price is also below that.
That would be to take a profit.
And then you're going to have a stop order
below that to take a loss.
I recommend going through this order ticket left to right, top
to bottom.
So we're going to walk through one.
Buy 100 Apple.
We can change this to market if we
want an execution right away.
And then we're going to go down to our second line.
The second line is the target.
That's the price at which you'd want to take a profit.
So we can set that to any price you want.
Let's make it-- you can use the up or down arrow
to adjust the price, or you can manually
click in the field and type in your price there.
Then on the next thing, I recommend
going to change these orders, these second two orders,
to Good Til Canceled.
And then on your final bottom line,
you're going to have sell 100 shares of Apple.
It's going to say Stop.
And I would change that to Good Til Canceled as well.
Because remember, at the end of the day,
if you have a day order in there,
those orders will expire at the end of the day.
So if you don't get filled, those OCO orders will be gone.
So now we have a 225 stop.
You can simply send that off to the exchange, and boom.
Bought 100 shares of Apple.
Now what you want to do is flip back to the Monitor tab.
Remember, the Monitor tab is where
we're going to go to monitor all of our positions
and monitor all of our trades.
Working Orders is the tab you'd want to click.
And then you could see that we have the working OCO in there.
You can right click on either of those,
and simply click on Cancel/replace order
to change the price.
Another really cool feature about the platform
is that you actually flip over to the chart
and change your prices from there.
So we're going to flip over to the chart,
change our symbol to Apple, and we
have to have it on a day chart in order for this to work.
And you can see right there, you have your target limit
on top and your stop order below.
You can simply cancel/replace these by dragging and dropping
them on the platform.
You can take also the whole bracket
by getting the little hand to appear.
And if I want to, I can simply drag this up,
if I wanted to raise both of my prices up.
And an order confirmation dialog comes up there
with the corresponding prices.
If you're not happy with those prices, simply click Edit.
Go in there, and then you can manually adjust the prices.
Also, you can do these individually.
So if I wanted to adjust just the target on top,
I can simply take that and drag it down.
Order confirmation dialog comes up.
You can simply hit Send if you're
OK with the price in the box.
And that's how you create an OCO order on the thinkorswim
platform.
For more tutorials and free investor education,
you can go to TD Ameritrade's YouTube channel or the TD
Ameritrade education center.