Top

3 Advanced Trading Order Types Explained

In addition to basic order types such as Limit Orders & Stop-Market Orders, there are also more advanced order types which can be valuable tools in a trader’s arsenal.

This article will cover the following three advanced order types:

  1. Market if Touched (MIT)
  2. One Cancels Other (OCO)
  3. Simulated Stop

 
Watch is 2 minute video for an introduction to these order types:

1. Market if Touched

A market if touched order, also commonly referred to as a “board order”, is a conditional order that becomes a market order when a specified price is reached. This means that unlike limit orders, which are not guaranteed to fill, once a market if touched order is hit by a price, it will execute at the best price available.

This is similar to a stop order, but the buy & sell actions are inverse, meaning market if touched orders are placed above the market on the sell side & below the market on the buy side.

Market If Touched Order

2. One Cancels Other

One cancels other, also known as “OCO”, is a pair of combined orders. When one order is executed the other is cancelled. These conditional order sets are often used to manage risk by pairing sets of exit orders.

They can also be used to plan a conditional breakout or fade entry strategy, where one potential entry order is cancelled when the other is executed.

OCO Order

3. Simulated Stop Order

Simulated stop orders are unique because they are simulated locally on a trader’s personal computer and can be used with market or limit orders. Each simulated stop incorporates a volume trigger. When the volume trigger value is met, the simulated stop order becomes a market or a limit order.

The advantage of this type of order is it is hidden from the market until the volume trigger it met. Conversely, this means that if the volume trigger associated with the order is not met, it will not execute. This functionality can play an important role in any volume based trading strategy.

Simulated Stop Order

NinjaTrader’s award winning software provides traders with multiple options for order entry including the SuperDOM, Chart Trader and more.

Ready to try it yourself? NinjaTrader is always free to use for advanced charting, strategy development, trade simulation & more. Get started for FREE today.