New Order Type – OCO (One Cancels Other)

With the addition of the OCO order type, you can now submit 2 orders simultaneously to either take profit or cut loss.

Definition: An order stipulating that if one part of the order is executed, the other is automatically cancelled.

Usage: To set a limit order to take profit and a stop limit order to cut loss.

To select the OCO option, click on “More Trading Options” to extend the trade ticket to include Related Orders options. (OCO is currently only available on SGX, HKEx and US exchanges)

Execution:

An example to illustrate profit taking with an OCO order

A client has a long position on counter ABC at $3.50.

He submits an OCO order consisting of a limit SELL order set at $3.90 (order 1) to take profit, and a stop-limit SELL order set at $3.40 (order 2) to cut any possible losses.

As the price climbs and reaches $3.90, the OCO is triggered, causing order 1 to be executed, thus cancelling the stop-limit order to sell at $3.40 (order 2), which might otherwise be triggered should the price of the counter ABC drop to $3.40.

An example to show how an OCO order can be used to minimise losses

A client has a long position on counter XYZ at $1.12.

He submits an OCO order consisting of a limit SELL order set at $1.14 (order 1) and a stop-limit SELL order set at $1.06 (order 2).

As the market price of the counter starts to drop rapidly and hits $1.06, this executes the stop-limit order (order 2), which in turn triggers the OCO to cancel the limit order with the limit price of $1.14 (order 1).

ChartView Upgrades

Charting on POEMS Mercury has been updated to include Corporate Action Adjustments and a new technical indicator, NATR (Normalised Average True Range).

Corporate Action Adjustments (for SG stocks)

Corporate actions such as share split or share consolidation can create price gaps in charts that can be disruptive when you perform your technical analysis. For example, a share split of 3-for-1 will cause the price to become one-third of what it used to be, creating a large gap on the chart. This may create seemingly bearish signals.

Therefore, we provide the option of adjusting the historical price data to ensure that all price movements on our charts are caused by pure market forces for more informed Technical Analysis. Simply right click anywhere on the chart and change ‘Chart Data’ to adjusted.

New Technical Indicator – NATR (Normalised Average True Range)

New Global Exchanges — SZSE, LSE, TSE, FWB

Trade over 11 Global Exchanges on POEMS Mercury now with the addition of Shenzhen, London, Tokyo and Frankfurt Stock Exchanges. Visit Phillip Global Markets for more details regarding respective exchanges.

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