Forex OCO Order Strategies
We already know the basic rules of forex trading, cut your losses and let your profit run. For this you will need a good strategies for risk management. You’ll convince yourself experimentally that risk management and profit strategies actually do work.
There are many strategies for risk management in Forex trading, just as there are with any other investment. One of the simplest to learn and use is employing different order types. A stop-loss order can help you limit losses, for example. A limit order can lock in profit gained.
Beyond these simple types, there’s one that is only slightly more sophisticated: the OCO order (One Cancels the Other). It’s easy to use and can be even more effective than the simpler types in controlling risk or maximizing returns.
Using OCO orders is just one more in what should be a whole toolkit of investing techniques. But it is one of the simpler ones to learn to use effectively. If you’re a novice trader it’s wise to use the demo trading software and get familiar with the different order techniques.
You might also like