Hallelujah- Ameritrade’s Conditional Orders

TDAmeritrade now gives us some more creative order options:

Conditional orders let you combine two or three individual orders that will, if filled, either cancel or trigger additional orders. Conditional orders are available for both stocks and single-leg option orders (in option-approved accounts).

The following types of conditional orders are available:

  1. OCA (one cancels another) - submit two orders simultaneously; if one order is filled, the other is canceled.
  2. OTA (one triggers another) - submit an order and if that order is filled, submit another order.
  3. OTT (one triggers two) - submit an order and if that order is filled, submit two additional orders.
  4. OT/OCA (one triggers an OCA order) - submit an order; if that order is filled, submit two orders simultaneously; if one of these orders is filled, cancel the other.
  5. OT/OTA (one triggers an OTA order) - submit an order; if that order is filled, submit another order. If that order is filled, submit a third order.

9 Comments

  1. BNJ said,

    March 28, 2007 @ 9:15 pm

    Great news. I’ve waited on this for years.

  2. Eyal said,

    March 29, 2007 @ 3:01 am

    That’s impressive. More comprehensive than IB’s offering in this area.

  3. Will said,

    March 29, 2007 @ 5:44 am

    I’m just glad we AMTD users can finally enter stops both above and below our position… but those #4 and #5 options look pretty interesting, too…

  4. LP said,

    March 29, 2007 @ 5:45 pm

    I look forward to the McShorty day.

  5. Will said,

    March 29, 2007 @ 8:44 pm

    LP - waiting patiently in foxhole, powder dry, eyes clear. Hoping to get a shot at McShorty Monday or Tuesday :)

  6. Mike Griggs said,

    March 30, 2007 @ 3:59 am

    Hey Will,
    Thanks for the great content online about stocks and such. I started doing some trading and have been learning and enjoying it. I just wanted to get your thoughts on using the conditional trading for setting “smarter” trailing stops. I haven’t really thought it through yet but it seems with the conditional trades there should be a way to setup multiple trailing stop orders so that the highest profits can be gained.. e.g., modifying trailing stop amount as price increases, etc.. Any ideas?

    Mike

  7. Will said,

    March 30, 2007 @ 5:23 pm

    Thanks Mike! I haven’t experimented with conditional orders as trailing stops, but I think their use as such would be pretty limited. I don’t think you can piggyback multiple conditional orders onto each other- just one or two.

    At Ameritrade, it’s possible using their “Trade Triggers” to, for instance, set a stop limit order at $31.50 if your stock hits $35 or whatever, but to actually program in a full-fledged trailing stop, which cancels one order and activates another one through multiple levels as a stock rises– I don’t think that’s currently possible, but I haven’t actually tried it myself, so I could very well be wrong. Someone else might jump in here with some better info.

    I’m mostly excited that we can now automatically buy XYZ at $50, and if that buy goes thru, immediately have a sell stop if it drops to $48.50 or a sell if it rises to $53 — I’ve been doing that kind of thing manually, and this’ll save tons of energy.

  8. Babak said,

    March 30, 2007 @ 9:03 pm

    I wouldn’t go that far Eyal. IB’s had all those for a while now. You might have to tweak it a bit and read the manual but it was there :o)

  9. Ugly said,

    April 6, 2007 @ 9:16 am

    Babak,
    could you post an article showing how to do those orders on IB? I would love it - I can’t find out how to do it and I could really use it. Thanks.

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