{"id":7058,"date":"2023-10-17T08:12:28","date_gmt":"2023-10-17T08:12:28","guid":{"rendered":"https:\/\/devexperts.com\/blog\/?p=7058"},"modified":"2025-03-11T15:46:29","modified_gmt":"2025-03-11T15:46:29","slug":"what-are-working-orders","status":"publish","type":"post","link":"https:\/\/devexperts.com\/blog\/what-are-working-orders\/","title":{"rendered":"What Are Working Orders? How and Why They\u2019re Used?"},"content":{"rendered":"\n<div class=\"wp-block-devexperts-custom-thumbnail\"><figure><picture><source media=\"(max-width: 639px)\" data-srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-600x338.jpg 2x, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-300x169.jpg 1x\"\/><source media=\"(min-width: 640px) and (max-width: 767px)\" data-srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-1168x657.jpg 2x, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-600x338.jpg 1x\"\/><source media=\"(min-width: 768px) and (max-width: 1023px)\" data-srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-1168x657.jpg 2x, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-728x410.jpg 1x\"\/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" data-srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-1168x657.jpg 1x, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-690x388.jpg 1x\"\/><source media=\"(min-width: 1280px)\" data-srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-1752x986.jpg 2x,\n\t\t\t\thttps:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-1752x986.jpg 1.5x,\n\t\t\t\thttps:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-870x489.jpg 1x\"\/><img loading=\"lazy\" decoding=\"async\" class=\"singleThumbnail lazyload\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-1024x576.jpg\" data-src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Post-Inner-Card-Big_-2-870x489.jpg\" width=\"870\" height=\"490\"\/><\/picture><\/figure><\/div>\n\n\n\n<p>Working orders, also known as pending orders, are a broad class of orders that allow traders to predefine certain conditions that must be met before a trade is executed. They\u2019re known as either working or pending because the order is considered active until either the preconditions are met and it\u2019s executed, or until it\u2019s canceled by the trader.&nbsp;&nbsp;<\/p>\n\n\n\n<p>An example of this would be an instruction to automatically buy a given asset in a certain quantity when the price drops to a lower level. This allows the trader to step away from their trading platform, knowing that the trade will be executed should the market move in their favor while they are away.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-difference-between-working-orders-and-market-orders\">The difference between working orders and market orders<\/h2>\n\n\n\n<p>This is in contrast to market orders, which are executed at the moment a trader decides to either press \u201cbuy\u201d or \u201csell,\u201d and are filled from the liquidity currently available in the order book.<\/p>\n\n\n\n<p>If the order in question is larger than the liquidity available at the top of the order book, the remaining volume is executed at the next best price. In this way market orders can be subject to slippage, meaning that they can be filled at a slightly worse price than the figure the trader saw on the screen before deciding to either buy or sell.<\/p>\n\n\n\n<p><strong>Pro tip:<\/strong> Learn more about order sweeping algorithms in our <a href=\"https:\/\/devexperts.com\/order-sweeping-algorithms-in-forex-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">e-book explaining the mechanics of forex trading<\/a>.<br><br>An easy way to understand the difference between market orders and working orders is that market orders are used when a trader is concerned with having their trade filled immediately, whereas working orders are used when a trader is concerned with executing at a specific price.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1015\" height=\"415\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list.png\" alt=\"Orders list\" class=\"wp-image-7100\" srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list.png 1015w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-300x123.png 300w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-768x314.png 768w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-320x131.png 320w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-382x156.png 382w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-578x236.png 578w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-800x327.png 800w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-70x29.png 70w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-454x186.png 454w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-574x235.png 574w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-861x352.png 861w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-290x119.png 290w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-277x113.png 277w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-354x145.png 354w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-531x217.png 531w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-600x245.png 600w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-690x282.png 690w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-728x298.png 728w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-870x356.png 870w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Orders-list-928x379.png 928w\" sizes=\"auto, (max-width: 959px) calc(100vw - 30px), 870px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Orders widget on our <a href=\"https:\/\/dx.trade\/\">DXtrade platform<\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p>In other words, market orders prioritize the <em>time of the trade<\/em>, while working orders prioritize the <em>price<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Liquidity makers vs liquidity takers<\/h2>\n\n\n\n<p>Another difference between these two types of orders is that when trading over an exchange working orders <em>add<\/em> liquidity to the venue or market being traded, whereas market orders <em>remove<\/em> liquidity. This is because to create a new working order a trader must lock up an amount of value to be traded at a later date should the market move in their desired direction.<\/p>\n\n\n\n<p>The order book is essentially a list of these buy and sell instructions, with the best available prices for each being found at the top of the book.<\/p>\n\n\n\n<p>Market orders, on the other hand, do not require any capital to be locked by the venue as they are executed immediately. They essentially \u201ceat\u201d through the available liquidity in the order book whenever a buy or sell market order is executed.<\/p>\n\n\n\n<p>Traders who place working orders are defined as liquidity makers, because they add liquidity to the venue in question, while traders who initiate market orders are known as liquidity takers because their trades effectively remove liquidity from the market. This is also why when trading on certain venues market orders tend to be subject to higher trading fees than working orders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-types-of-working-orders-explained\">The types of working orders explained<\/h2>\n\n\n\n<p>The easiest way to understand different working order types is to divide them into three groups.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"519\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-1024x519.png\" alt=\"Order types\" class=\"wp-image-7064\" srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-1024x519.png 1024w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-300x152.png 300w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-768x389.png 768w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-320x162.png 320w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-382x194.png 382w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-578x293.png 578w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-800x405.png 800w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-70x35.png 70w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-454x230.png 454w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-574x291.png 574w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-861x436.png 861w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-290x147.png 290w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-277x140.png 277w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-354x179.png 354w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-531x269.png 531w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-600x304.png 600w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-690x350.png 690w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-728x369.png 728w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-870x441.png 870w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-928x470.png 928w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types-1168x592.png 1168w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Order-types.png 1188w\" sizes=\"auto, (max-width: 959px) calc(100vw - 30px), 870px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Types of working orders<\/em><\/figcaption><\/figure>\n\n\n\n<p>The first group contains instructions to execute trades at a better price than the current market price (this would be a lower price for traders who are buying and a higher price for traders who are selling).<\/p>\n\n\n\n<p>The second group contains instructions to execute trades at a price that\u2019s less favorable than the current market price (we\u2019ll see why below).<\/p>\n\n\n\n<p>The third group contains instructions to close pre-existing trades either at a profit or at a loss.<\/p>\n\n\n\n<h3 id=\"h-limit-orders\" class=\"wp-block-heading\">Limit orders<\/h3>\n\n\n\n<p>A limit order is an instruction to execute a trade at a more favorable price than the current price available on the market. Limit orders allow traders to have trades executed automatically on their behalf if and when the market they are trading reaches their desired price.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"655\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-1024x655.png\" alt=\"Limit order\" class=\"wp-image-7102\" srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-1024x655.png 1024w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-300x192.png 300w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-768x491.png 768w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-320x205.png 320w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-382x244.png 382w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-578x370.png 578w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-800x511.png 800w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-1366x873.png 1366w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-70x45.png 70w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-454x290.png 454w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-574x367.png 574w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-861x550.png 861w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-290x185.png 290w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-277x177.png 277w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-354x226.png 354w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-531x339.png 531w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-264x169.png 264w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-529x338.png 529w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-607x388.png 607w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-641x410.png 641w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-765x489.png 765w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-816x522.png 816w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2-1028x657.png 1028w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Limit-order-2.png 1475w\" sizes=\"auto, (max-width: 959px) calc(100vw - 30px), 870px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Limit orders<\/em><\/figcaption><\/figure>\n\n\n\n<p>For traders attempting to buy, or go long, buy-limit orders allow them to potentially buy the asset at a better price than is currently available. Buyers want to buy low and sell high, so buy-limit orders are placed <em>below<\/em> the prevailing market price.&nbsp;For traders attempting to sell, or go short, sell-limit orders allow them to potentially sell the asset at a better price than is currently available. Sellers want to sell high and buy low, so sell-limit<strong> <\/strong>orders are placed <em>above<\/em> the prevailing market price.<\/p>\n\n\n\n<h3 id=\"h-stop-orders\" class=\"wp-block-heading\">Stop orders<\/h3>\n\n\n\n<p>Limit orders are easy enough to understand. Most people can intuitively grasp the concept of buying low and selling high. But as we saw from our second group above, there\u2019s a class of working order that allows traders to automatically execute trades at a price that\u2019s worse than the current available price. Why on earth would anyone ever want to do that?&nbsp;<\/p>\n\n\n\n<p>Stop orders are used by traders to prevent them from missing out when the market moves in the direction they\u2019re expecting before they\u2019ve managed to enter.<\/p>\n\n\n\n<p>For example, a trader who wants to buy an asset they expect to rise, but wants to get in at a cheaper price, may wait, or use a buy-limit order as explained above. But what if the market never comes down to that lower level and moves higher? In this case, the trader will have missed out on the opportunity to enter the market.<\/p>\n\n\n\n<p>A buy-stop order offers some protection against this scenario by allowing the trader to set a level <em>higher<\/em> than the current market price at which they\u2019re willing to enter the market if they don\u2019t manage to do so at a better price.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"602\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-1024x602.png\" alt=\"Stop order\" class=\"wp-image-7065\" srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-1024x602.png 1024w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-300x176.png 300w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-768x451.png 768w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-320x188.png 320w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-382x225.png 382w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-578x340.png 578w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-800x470.png 800w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-70x41.png 70w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-454x267.png 454w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-574x337.png 574w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-861x506.png 861w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-290x170.png 290w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-277x163.png 277w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-354x208.png 354w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-531x312.png 531w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-287x169.png 287w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-575x338.png 575w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-660x388.png 660w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-697x410.png 697w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-832x489.png 832w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-888x522.png 888w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order-1118x657.png 1118w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-order.png 1184w\" sizes=\"auto, (max-width: 959px) calc(100vw - 30px), 870px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Stop orders<\/em><\/figcaption><\/figure>\n\n\n\n<p>Similarly, a sell-stop order allows a trader who expects an asset to drop in value but hasn\u2019t managed to sell at a more favorable (higher) price to define a <em>lower<\/em> level at which to sell should the market move down as expected.<\/p>\n\n\n\n<h3 id=\"h-oco-onecancelstheother-orders\" class=\"wp-block-heading\">OCO (One-Cancels-the-Other) orders<\/h3>\n\n\n\n<p>OCO, or One-Cancels-the-Other, is a special kind of order that allows traders to use combinations of the order types described above. OCO orders are used when traders want to control for more than one market possibility, and thus to more effectively manage the risk of an unwanted outcome, or of missing an entry point. The reason they\u2019re called One-Cancels-the-Other is that as soon as one of the two orders is triggered by the market, the other is automatically canceled.<\/p>\n\n\n\n<p>You can think of an OCO order as covering you both when the market moves in your expected direction and when it moves the other way. For example, OCO orders allow you to combine a limit order with a stop order, the limit order allows you to enter the market at a better price than the current one, and the stop order allows you to still enter the market even if the price never reaches the level you defined in your limit order and moves in the opposite direction.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"544\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-1024x544.png\" alt=\"OCO order\" class=\"wp-image-7066\" srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-1024x544.png 1024w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-300x159.png 300w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-768x408.png 768w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-320x170.png 320w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-382x203.png 382w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-578x307.png 578w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-800x425.png 800w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-1366x725.png 1366w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-70x37.png 70w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-454x241.png 454w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-574x305.png 574w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-861x457.png 861w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-290x154.png 290w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-277x147.png 277w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-354x188.png 354w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-531x282.png 531w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-600x319.png 600w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-690x366.png 690w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-728x387.png 728w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-870x462.png 870w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-928x493.png 928w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO-1168x620.png 1168w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/OCO.png 1401w\" sizes=\"auto, (max-width: 959px) calc(100vw - 30px), 870px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>OCO (One-Cancels-the-Other) orders<\/em><\/figcaption><\/figure>\n\n\n\n<p>OCO orders also allow you to cover either side of the current market price when you don\u2019t have a directional bias. So, for example, if the market you\u2019re monitoring is trading in a narrow range and you have no opinion as to whether it will eventually break higher or lower, you can set a buy-stop order above the current price and a sell-stop order below the current price so that you can be covered regardless of the direction of the break.<\/p>\n\n\n\n<h3 id=\"h-takeprofit--stoploss-orders\" class=\"wp-block-heading\">Take-Profit &amp; Stop-Loss orders<\/h3>\n\n\n\n<p>Our third and final group of working orders focuses specifically on <em>pre-existing positions<\/em> in the market. Stop-loss and take-profit orders are simply instructions to automatically close existing trades either at a more favorable price (in the case of take-profit orders) in order to lock in gains, or at a less favorable price (in the case of stop-loss orders) in order to prevent further losses.<\/p>\n\n\n\n<p>In the case of a long (buy) position, a take-profit order is an instruction to close an existing position at a price <em>above <\/em>the current market price. In the case of a short (sell) position, a take-profit order is an instruction to close an existing position at a price <em>below<\/em> the current market price.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"634\" src=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-1024x634.png\" alt=\"Stop loss and take profit\" class=\"wp-image-7103\" srcset=\"https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-1024x634.png 1024w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-300x186.png 300w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-768x475.png 768w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-320x198.png 320w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-382x236.png 382w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-578x358.png 578w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-800x495.png 800w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-1366x845.png 1366w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-70x43.png 70w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-454x281.png 454w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-574x355.png 574w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-861x533.png 861w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-290x179.png 290w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-277x171.png 277w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-354x219.png 354w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-531x329.png 531w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-273x169.png 273w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-546x338.png 546w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-627x388.png 627w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-662x410.png 662w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-790x489.png 790w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-843x522.png 843w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit-1062x657.png 1062w, https:\/\/devexperts.com\/blog\/app\/uploads\/2023\/10\/Stop-loss-and-take-profit.png 1535w\" sizes=\"auto, (max-width: 959px) calc(100vw - 30px), 870px\" \/><\/a><figcaption class=\"wp-element-caption\"><em>Take-Profit &amp; Stop-Loss orders<\/em><\/figcaption><\/figure>\n\n\n\n<p>In both scenarios, the take-profit order allows for a profitable position to automatically be closed while still in profit, protecting against the possibility that the market may move in the opposite direction before the trader is able to manage their trades accordingly.<\/p>\n\n\n\n<p>Stop-loss orders work in much the same way except that their function is to automatically limit losses rather than to lock in profits. So, in the case of a long (buy) trade, a stop-loss is set <em>below <\/em>the current market price, allowing the trade to automatically be closed and thus limit losses if the market continues moving down. In the case of a short (sell) trade, a stop loss is placed <em>above<\/em> the current market price, allowing the trade to automatically be closed and thus limit losses if the market continues higher.<\/p>\n\n\n\n<h2 id=\"h-recap\" class=\"wp-block-heading\">Recap<\/h2>\n\n\n\n<p>The three types of working orders described above (buy\/sell-limit, buy\/sell-stop, take-profit\/stop-loss) provide traders with much more control over their trading activity while away from the screen. The orders allow them to automatically enter and exit at more favorable prices, avoid missing out on market moves, as well as lock in profits, and limit losses. All that while paying lower fees than when manually entering market orders to either \u201cbuy\u201d or \u201csell\u201d at the moment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are working orders? Working orders are automated instructions for trade execution, active until conditions are met or canceled. They help traders manage their trades more effectively and seize opportunities in dynamic markets.<\/p>\n","protected":false},"author":39,"featured_media":7072,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2021],"tags":[2027,11,49],"class_list":["post-7058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","tag-brokerage","tag-financial-software","tag-trading-platform"],"acf":{"nifty_post_card_image":7220,"nifty_post_card_index_big":7072,"nifty_post_inner_image":7221,"nifty_post_card_banner":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Are Working Orders? How and Why They\u2019re Used? - Devexperts Blog<\/title>\n<meta name=\"description\" content=\"What are working orders? 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