Managing risk is the cornerstone of profitable trading, whether you are scalping SPY options or swinging equities. In platforms like Thinkorswim (TOS), bracket orders—also known as One-Cancels-Other (OCO) orders—allow you to automate your trade plan the moment your position opens.
Automating trade exits eliminates emotional hesitation. In Thinkorswim (TOS), an OCO (One-Cancels-Other) bracket order lets you define your exit parameters simultaneously:
Profit Target (+70%): Configured as a Limit Order to exit when the price hits your target gain.
Stop Loss (-20%): Configured as a Stop Market (STP) or Stop Limit order to protect your capital.
Time-in-Force (TIF): Set both sides to GTC (Good 'Til Canceled) so your bracket remains active across sessions until triggered or filled.
Disclaimer: This article is provided for educational and informational purposes only and does not constitute financial, investment, trading, tax, or legal advice. Options involve substantial risk and are not suitable for all investors. You can lose some or all of the money invested in an options contract, and certain options strategies can involve substantially greater risks. Nothing in this article is a recommendation to buy or sell any security, option, ETF, or other financial instrument. Past performance does not guarantee future results. Always conduct your own research, understand the risks, and consider consulting a qualified financial professional before trading. SEO-Alien.com and its authors assume no responsibility for losses resulting from the use of this information.
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