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Module 1 – Lesson 10 – Introduction to types of orders
Stop losses are extremely useful if you don’t want to sit in front of your monitor all day worried that you will
lose all your money. You can simply set a stop loss order on any open positions, so you won’t miss your
basket weaving class or elephant polo game.
A stop limit order lists two prices and is an attempt to gain more control over the price at which your stop is
filled. The first part of the order is written like the above stop order. The second part of the order specifies a
limit price. This indicates that once your stop is triggered, you do not wish to be filled beyond the limit price.
5. one cancels the other
An OCO order is a combination of two entry and/or stop loss orders.
Two orders with price and duration variables are placed above and below the current price. When one of the
orders is executed the other order is cancelled.
Let’s say the price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in
anticipation of a breakout or initiate a selling position if the price falls below 1.1985.
The understanding is that if 1.2095 is reached, your buy order will be triggered, and the 1.1985 sell order will
be automatically cancelled.
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