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What's New in Education?

In this blog, you'll read about Scottrade's educational tools and resources. I'll keep you posted when new features are available and highlight popular articles. If you have ideas or suggestions for enhancing our educational offering, reply to a blog post or bring it up in the Education Resources discussion group.

Mimicking a Stop Order

Back by popular demand: Using a Condition to Mimic a Stop

This is an article that was retired from the Knowledge Center a while ago, but we had so many customers asking for it that we brought it back! The article walks you through a way to set up an OCO order to mimic a stop order, which is helpful if you prefer using regular stop orders instead of trailing stops.

Other Featured Content:

Did You Know? The PEG Ratio (Price/Earnings Growth) is a fundamental analysis tool that can provide a quick gauge of valuation. While no exact value for the ratio is considered good or bad, many have determined general rules. In some theories, a ratio of 2 or higher is considered overvalued, with PEG ratios of around 1 or lower considered to signal an undervalued investment.To learn more about the PEG ratio and other popular valuation ratios, visit the Knowledge Center.

Posted by Education Editor on Nov 20, 2009 10:28 AM CST

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Education Editor

Date Posted: Dec 2, 2009 at 2:05 PM

Great question, Bullhead. Generally, you could use an OCO rather than a regular stop order if you want to take one of two actions with the shares you own. For example, if you own a stock that's at $7 and you want to sell if the stock rises to $10 or sell if it falls to $5 (make a profit or cut your losses), an OCO would be the better choice because you can't set two stop orders on the same symbol. You would set up the first order as a limit order to sell if the stock reaches or surpasses $10, and then your second order would be the "mimic" order, where you would set up a market order to sell with a condition of $5. When one of the orders is executed, the other will be cancelled.

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Bullhead

Date Posted: Nov 25, 2009 at 6:21 AM

In what instance would an OCO be better than a percentage based trailing stop?

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Community Concierge

Date Posted: Nov 20, 2009 at 10:40 AM

Great information and very useful !

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