City Index: How OCO Orders Can Help Protect Your Spread Betting Capital

LONDON--(BUSINESS WIRE)-- In spread betting and CFD trading, you need to be able to react to market movements as quickly as possible when the state of play changes. And one thing is for sure: even with the benefit of in-depth market analysis, no trader is able to react faster than an OCO (one-cancels-the-other) order. Here, spread betting and CFD trading provider City Index (http://www.cityindex.co.uk/) shows how to use OCO orders to your advantage.

OCO Orders

As the name suggests, a one-cancels-the-other order allows you to take two views on the same market by placing two simultaneous opening orders. When a price movement triggers one of your chosen price points, that order will be executed while the remaining order is automatically cancelled.

Example of an OCO Order

Imagine non-farms payroll numbers are due for release at 1:30 and you want to trade the direction resulting from the announcement. The market is currently at 5500, so you might place one OCO order to buy at 5550 and another to sell at 5450. Therefore, whichever order was hit first would execute and the other order would be cancelled. This way you are in position to trade whichever direction the price moves in.

You can also use OCO orders on stop losses and limit orders. For example, if you believed the FTSE was set to rally, you could buy the FTSE at £10 per point on 5500 and place an OCO order to close your trade at 5450 or 5600, whichever was reached first.

Learn more about risk management orders at:

http://www.cityindex.co.uk/learn-to-trade/risk-management-orders.aspx

Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.

About City Index

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through City Index.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to instruments including CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and excellent customer support. Visit http://www.cityindex.co.uk/ for more.

City IndexJoshua Raymond+44(0)20-7107-7002
joshua.raymond[at]cityindex.co.uk

Source: City Index