Why Traders Need OCO Orders to Win

This video explains why it is important to use the One Cancels the Other order type for the exit strategy when in a trade. This will impact short term traders more, but swing traders should not overlook it. When you have an existing position and an OCO pair for a profit taker and stop loss, these orders are held on the exchange servers. When one side is filled, the other is canceled and there is no risk of an erroneous trade in the case of a power drop out. With this method there is no way you can get trapped in a trade without a stop unless the exchange blows up, and in that case they probably still have a fail over. Most trading services support OCO orders, but not all trading services support server-side bracket orders before the parent order has been filled, which is also very important for day traders.

Broker used to Trade Stocks & Options: 📈
https://www.InteractiveBrokers.com/mkt/?src=verrilloy4&url=%2Fen%2Findex.php%3Ff%3D1338
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Software used for Trading, Market Data & Automated Trading:
https://www.sierrachart.com

Broker used for Trading Futures:
https://www.ironbeam.com

Service used for Currency Conversion & Cross-Border Banking:
https://Wise.prf.hn/l/vJ3lpxv

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Disclaimer: The content that this channel provides is intended for educational purposes only. Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. The risk of loss in trading commodity interests can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.

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00:00:00 Context & Intro
00:01:33 What is an OCO?
00:03:12 Stop relying on client side features
00:04:22 Example of proper OCO exit strategy
00:04:53 Example of improper exit strategy
00:06:45 Why is this so important?
00:07:53 How this impacts trading expectancy
00:10:12 Server-Side exit strategy before parent order is filled
00:12:03 IBKR is also fully server side