How to Use Stop-Limit and OCO Orders
Protect your positions with advanced order types. Set stop losses and combine multiple conditional orders in one.
Stop-limit and OCO are conditional orders: nothing rests on the book until your trigger price trades, and then a limit order is placed for you. They automate the exit you would otherwise have to watch for. The failure mode to understand is a fast market that gaps straight through your limit — the trigger fires, the limit never fills.
Before you start
- The position or balance the order will act on.
- Two prices thought through in advance: the trigger, and the limit you are willing to accept once it fires.
Understand Stop-Limit Orders
A stop-limit order combines a trigger price (the stop) with a limit price. When the market hits your stop price, a limit order is placed at your specified limit price. This is commonly used for stop-loss protection, allowing you to limit downside while controlling the minimum price at which you sell.
Place a Stop-Limit Order
Select 'Stop-Limit' from the order type dropdown. Enter the stop price (the trigger), the limit price (the price your order will be placed at), and the quantity. For a sell stop-loss, set the stop price below the current market price. Tap 'Sell' to submit.
Understand OCO Orders
An OCO (One-Cancels-the-Other) order lets you place two orders simultaneously: a limit order and a stop-limit order on the same asset. When one order fills, the other is automatically cancelled. This is ideal for setting both a take-profit target and a stop-loss on the same position.
Place an OCO Order
Select 'OCO' from the order type dropdown. Fill in four fields: the limit price (your take-profit target), the stop price (the trigger for your stop-loss), the stop-limit price (the price of the limit order created when the stop triggers), and the quantity. Tap 'Sell OCO' to submit both orders together.
Monitor and Manage
Your OCO order will appear as a group in your Open Orders. If either the take-profit or stop-loss fills, the other is automatically cancelled. You can also manually cancel the entire OCO group from the Open Orders section. These order types are essential tools for disciplined risk management.
If something goes wrong
- The stop triggered but nothing filled.
- Price moved past your limit before the order could execute. A wider gap between trigger and limit makes this less likely, at the cost of a worse guaranteed price.
- The stop fired on a brief wick you did not consider a real move.
- Triggers react to traded price, wicks included. Placing the trigger further from noise, or sizing smaller, are the two honest answers.
- One leg of an OCO filled and the other is still showing.
- The remaining leg cancels automatically — the pairing is the point. If it lingers in the list, refresh before cancelling by hand, or you may cancel a leg that is already gone.
Frequently asked questions
- What is the difference between the trigger and the limit price?
- The trigger is the price that activates the order; the limit is the worst price you will accept once it is active. They are usually close but not identical.
- What does OCO stand for?
- One-cancels-the-other: a take-profit and a stop-loss placed together, where filling either cancels its twin.
- Do conditional orders lock up my balance?
- They reserve it while pending, so the balance is not available for other orders. Cancelling releases it immediately.