How to Set an OCO Bracket
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This document outlines the steps to set an OCO (One Cancels Other) bracket stop price or sell limit for stocks. It details three easy steps: searching for your stock, creating a closing order, and adjusting price points. The document is targeted at swing traders and technical analysts.
How to Set an OCO Bracket
- 1. How to Set an OCO Bracket STOP PRICE OR SELL LIMIT – YOU’RE OUT EITHER WAY
- 2. 3 Easy Steps to Create an OCO Bracket Step 1 - Search for your stock Step 2 - Create a closing order Step 3 - Adjust the price points
- 3. Search for the Stock
- 4. Create a Closing Order
- 6. Pull up the Chart
- 7. Review Your Active Order and Adjust as Needed
- 9. Review 3 Easy Steps to Create an OCO Bracket Search for your stock Create a closing order Adjust the price points
Editor's Notes
- #2: So you have your stock purchased, but your trading plan says that you should set a Stop price that you would want to sell at if the price reaches it. While you’re at it, you want to put in a Sell Limit at the upper price that you want to sell at if the price reaches it. What you want to do is set up an OCO Bracket - otherwise known as a One Cancels Other Bracket.
- #3: Using TD Ameritrade, it’s actually simple to enter the order that will either sell at the top when your target price is hit, or stop out at the bottom if the trade turns against you. There are just 4 steps to walk through to get the order setup. 1. Search for your stock 2. Create a closing order 3. Adjust the price points 4. Walk Away knowing you are covered…. Now let’s walk through it.
- #4: In the entry space for the search box, type the ticker symbol for the stock you want to setup the order around.
- #5: Right click on the “POS” indicator, choose “Create closing order” and then “with OCO Bracket”
- #6: When the box for your order displays, click on “Confirm and Send” button to accept the defaults for the change in order. You will make updates to it in the next step.
- #7: Change your view to the Chart tab and search for the stock you are working with.
- #8: Now you should see two new additions to your view – a Stop Order and a Limit Order. These are the two items that will form your bracket.
- #9: Adjust the Stop order and Limit order to your desired levels that you calculated in your trading plan. Once you make a change, you will have a confirmation box that you must accept the changes to… click Send.
- #10: As you can see, it’s just 4 easy steps to create a OCO Bracket. You just search for your stock, create a closing order, adjust the price points and walk away knowing you are covered.