Orders If Then OCO
The If Then OCO commands are the combination of the two types of previous orders and are basically used to establish a point of entry, an exit point and a stop point at a different market price.
Now we are going to discuss one of the topics that may be of more interest to operators who have some more experience. It is actually one of the inheritances of the operations in bond and stock markets and is known as Strangle Orders.
It is common that this technique is also known as Stradling but technically the Stradling is not viable in the Forex market as it consists of placing two market orders to certain pips away from the current price, a sale at a lower market price and A purchase at a higher price, this strategy became very popular a couple of years ago to operate news such as the NFP for example, but today its effectiveness has decreased considerably due to policies applied by brokers and will be studied soon.
In fact, rollovers are closely linked to carry trade and are orders that are used in operations of more than one day. They basically consist of closing one position and simultaneously opening another for a similar value, in this case as operators what we see is simply that the purchase or sale price when changing operating hours (for most brokers at 5 PM New York) changes for a better or worse price depending on which side of the carry trade we find (if we are on the side with higher rate will be better price and if we are on the side of worse rate as it will be worse price), despite being automatic orders were Included as an integral part of the operation of the accounts.
Warranty on orders, scalping and slippage
This is probably the most complicated issue to deal with as it is linked, as always, to our choice of broker, since depending on the broker there are several policies that seek to protect their interests and of course we must know them to learn to operate with them and take advantage of them in the best way:
Warranty on orders
As any trader with experience in the Forex market knows, brokers can not guarantee to execute all orders placed at any price since in many cases there are prices that are not always available.
Slippage is a common practice used by brokers who do not guarantee prices. It basically consists of guaranteeing the execution but only at the best price available in the market, which means that as it can be at the desired price can be made at another price that is usually worse and that in the case of news usually Be at the end of the initial movement that generates the same, which may not produce the best results for the operator.
This is by far the most difficult way to trade in Forex and any other financial market. The scalping is performed by operators with both market orders and orders to enter so that even hundreds of orders in a day in search of the few pips that can be obtained from the divergences in price between one and other operators. Nevertheless the great majority of brokers consider them undesirable and their orders are limited in principle by the necessary distance of the current price and finally by a clause that they have all the contracts where they can terminate unilaterally the contract and therefore to be vetoed in that institution.
The subject of the different types of orders is much more complex and extensive than it may seem in principle. In fact, the orders like so many other tools that we offer to operate are only that, tools, if they want to base an operating system only in these tools should think this, if it is so effective because no one has done it before? And above all the question absolutely indispensable to operate in any market, a professional as it would ?.