Learning Center - Order Types (2024)

FAQs

What is the difference between OCO and bracket order? ›

Also referred to as a bracket order, the OCO is an instruction issued with the goal of linking a stop loss order with a limit order. When it comes to this situation, the stop loss order acts as protection in case the trade moves in the wrong direction. The limit order on the other hand serves as a profit target.

GTC order stands for Good Till Cancelled order. This means that the order will be active until you cancel it. GTC + Ext means that the order will be active during both regular market hours and extended hours until you cancel it.

Blast All. Submits up to eight orders simultaneously, each independent of the others. 1st Triggers Sequence. The first order entered in the Order Entry screen triggers a series of up to seven more orders that are not filled until the next order in the queue is filled.

Working orders: Orders that have been placed but not yet filled. Filled orders: Orders that have been executed.

OSO/OTO orders also can be created that take advantage of the position of some stocks as bellwethers for their industries or sectors. An OSO/OTO order are, in effect, the opposite of an order-cancels-order/one-cancels-the-other (OCO) order, in which execution of a primary order cancels one or more other orders.

A bracket order is used to plan profit & loss, whereas a cover order is only used to control the loss. In a bracket order, the position gets squared if the target order and stop-loss order are not executed. In a cover order, squaring off is dependent on the stop loss order.

Day orders and good 'til canceled are both trading methods, but GTC suits better for an exit strategy. Choosing a price that gives a maximum profit on the return on investment for a set period guarantees better returns than day trading.

IOC orders differ from other duration orders in that they only require a partial fill, whereas both FOK and AON orders must be filled in their entirety or canceled. GTC orders remain active until either executed in the market or canceled by the client, although most brokers cancel them between 30 and 90 days.

GTT in Zerodha remains valid for one year or till the trigger condition is hit. Unlike GTC, GTT orders get placed to the exchange only when the set trigger condition gets hit. The execution of the order is not guaranteed as it is dependent on the order price. In such a case, the GTT order needs to be placed again.

What is the difference between a stop limit and a stop market order? ›

In a regular stop order, if the price triggers the stop, a market order will be entered. If the order is a stop-limit, then a limit order will be placed conditional on the stop price being triggered. Thus, a stop-limit order will require both a stop price and a limit price, which may or may not be the same.

The stop-limit order will be executed at a specified price, or better, after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy or sell at the limit price or better. This type of order is an available option with nearly every online broker.

Electronic markets (or ECNs) used in after-hours trading automatically attempt to match up buy and sell orders. If they can do so, trades are completed. If they can't, trades remain unfilled.

A filled order is an active order whose price or other conditions were reached by the market, and therefore the order was filled. A filled order can include a buy, a sell, or an exit.

A call is an option contract giving the owner the right but not the obligation to buy a specified amount of an underlying security at a specified price within a specified time.

A Bracket OCO order consists of two exit orders with the same symbol, quantity, and order action (Buy, Sell, etc.). When one of the orders is partially filled, the other order's quantity is automatically decremented by the same amount.

Bracket orders are designed to help limit your loss and lock in a profit by "bracketing" an order with two opposite-side orders. A BUY order is bracketed by a high-side sell limit order and a low-side sell stop order. A SELL order is bracketed by a high-side buy stop order and a low side buy limit order.

An example of OCO

So, if Tesla stock is trading at $100, and you think the electric vehicle manufacturer is a sinking ship, you can set your traditional stop-loss order to sell at $99 to cut your losses. But with an OCO order, you can both set it to sell at $99 and at the same time, set it to sell at $101.

A bracketed order is a type of trade used by market professionals to limit potential loss and lock in profits by surrounding the trade with two opposite-side orders. A bracketed buy order has a sell limit order priced above the buy order and a sell stop order (or stop-loss order) priced below the buy order.