Futionary: Today's Term O/C/O

May 21, 2014 12:22PM CDT

With the markets trading almost twenty-four hours a day, you need to make sure you have twenty-four hour coverage. When you enter into a new position, you more than likely have a plan for exit. Which means you have a point at which you wish to stop your loss and a point at which you would like to take your profit. When the trading floor was operational, a trader could give an order to buy on a stop or buy on a limit o/c/o. The term o/c/o officially stood for order cancels order. Or many took it to mean one cancels the other, which also would be accurate. That meant when you placed the order, the trading floor was responsible for automatically cancelling the unfilled side when one side was filled. When the electronic markets came about, that type of order was not recognized and it became a manual function by traders or their brokers. But there was always that possibility that you could be filled on both orders during a volatile night session and you would not know until you woke up the next day. I do accept o/c/o orders from my clients. However, if you place your orders online, you may want to call us for a demo of our new order platform RJO Futures PRO. This sophisticated platform will accept your o/c/o orders and it will cancel the other side if one side is filled while you sleep. If you want more information please give me a call.

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