1st trigger OCO on any Direct Access Platform?

Discussion in 'Trading Software' started by DreamTrader, Nov 29, 2010.

  1. Hello, everyone. I am learning/choosing platforms for stock daytrading: Laser, Lightspeed, Sterling Pro and Blackwood Pro. I have a question about these direct access platforms. Which one offers 1st trigger OCO (one cancel other) order entry feature? This feature allows me to input entry price, 1st target price and stop loss price all at once. I was told none of above mentioned platforms offers this important feature. Is it ture and why?

    Thank you so much for reading and even more for replying! :)
  2. Assuming you mean US equities, I believe (although I’m not 100% sure, so you’d better wait to see if anyone else confirms or refutes what I write!) the issue relates to market fragmentation.

    Unless you specify a particular venue, a US equity trade may be executed at NYSE, at AMEX, at NASDAQ, at any of the regional exchanges, on any of the ECNs, in a dark pool, or internally by your broker (and I am confident I’ll have omitted some other execution possibilities, too).

    Often, low cost broker commission plans are dependent on you not specifying the venue; this gives the broker the option to choose where to execute your orders in a way that best suits your broker.

    Owing to the myriad possibilities open to the broker, the broker might want to execute your entry order here, your target order elsewhere, and your stop order yet somewhere else. In this instance they can’t confidently offer you OCO (as it would mean an executed/cancelled order in one venue having to cancel another order in another venue before that other order was unintentionally executed also).

    I think it’s something like that ...

    I suspect brokers offering OCO is more common in futures trading.
  3. Hello, abattia. Thank you so much for your reply. I send you a private message. Thank you again!