Complete Guide to Tradovate Order Types
Quick Reference
Need to place an order right now?
Enter immediately: Market Order
Buy/sell at specific price: Limit Order
Protect against losses: Stop Order
Control slippage on stops: Stop-Limit Order
Lock in profits automatically: Trailing Stop
Set profit target + stop loss together: OCO (One-Cancels-Other)
New to order types? Continue reading for detailed explanations, examples, and best practices.
Understanding Order Types: The Foundation
Order types are your primary tools for controlling when, how, and at what price your trades execute. Choosing the right order type can mean the difference between a profitable trade and a costly mistake.
Why Order Types Matter:
Price Control: Get the fills you want, not just any fill
Risk Management: Protect your account from unexpected market moves
Trade Automation: Execute your strategy even when you're not watching
Slippage Reduction: Minimize the difference between expected and actual prices
Strategy Execution: Implement complex trading plans with precision
Market Orders: Immediate Execution
What Market Orders Do
Market orders execute immediately at the best available price in the market. When you submit a market order, you're saying "fill me now, whatever the current price."
When to Use Market Orders
Perfect for:
Quick entries when you see a setup developing
Fast exits when you need out of a position immediately
High-volume markets with tight bid-ask spreads (ES, NQ, YM)
News reactions where speed matters more than price
Stop-loss execution when protecting capital is priority
Example Scenario: You see a strong breakout forming on ES and want immediate entry. A market order gets you in within milliseconds rather than risking the move continue without you in a trade.
Market Order Advantages
Guaranteed execution (assuming market is open)
Immediate fills with no waiting
Simple to use - just click buy or sell
Perfect for liquid markets where spreads are tight
Market Order Risks & Considerations
Price uncertainty - you don't control the exact fill price
Slippage risk in fast-moving or thin markets
Gap risk if market jumps between when you click and when order fills
Not recommended for low-volume contracts or wide spreads
Risk Management Tip: Always check the bid-ask spread before using market orders.
Limit Orders: Price Control
What Limit Orders Do
Limit orders let you specify the exact price (or better) at which you want your order filled. Buy limits go below current market price, sell limits go above current market price.
When to Use Limit Orders
Perfect for:
Precise entries at key support/resistance levels
Profit-taking at predetermined target prices
Better fills in choppy or ranging markets
Cost averaging strategies where price matters most
Overnight orders where you want specific price execution
Example Scenario: ES is trading at 4,500 but you want to buy at the 4,485 support level. A buy limit at 4,485 will only fill if the market comes down to your price or better.
Limit Order Execution Details
Fill Priorities:
Price priority: Better prices fill first
Time priority: Earlier orders at same price fill first
Size considerations: Large orders may receive partial fills
Important Notes:
Market must trade through your limit price to guarantee fills
Partial fills possible if insufficient volume at your price
Orders remain active until filled, canceled, or expired
Stop Orders: Protection and Momentum
What Stop Orders Do
Stop orders become market orders when the market reaches your specified stop price. They're placed opposite to current market direction: buy stops above market, sell stops below market.
When to Use Stop Orders
For Risk Management:
Stop losses to limit downside on existing positions
Trailing protection as positions move in your favor
Account protection from catastrophic losses
Example Scenarios:
Protection: Long ES at 4,500, place sell stop at 4,480 to limit losses
Momentum: ES consolidating at 4,500, place buy stop at 4,510 to enter breakouts
Stop Order Execution Process
Order placed at your specified stop price
Market reaches your stop price (order becomes "elected")
Converts to market order and fills at next available price
Fill confirmation received (may differ from stop price due to slippage)
Stop Order Risks & Management
Slippage Considerations:
Fast markets: May fill significantly away from stop price
Gap opens: Potential for large slippage on overnight gaps
Low liquidity: Wide fills possible in thin markets
Best Practices:
Account for slippage when setting stop levels
Monitor volatility - wider stops in volatile conditions
Consider stop-limits if slippage control is critical
Avoid round numbers where many stops cluster
Stop-Limit Orders: Slippage Control
What Stop-Limit Orders Do
Stop-limit orders combine stop and limit functionality. When your stop price is hit, a limit order (not market order) is placed at your specified limit price.
When to Use Stop-Limit Orders
Perfect for:
Volatile markets where slippage is a major concern
News events where prices gap significantly
Large positions where slippage costs add up
Precise exit prices where you'd rather miss than pay too much
Example Scenario: Long ES at 4,500, want stop protection at 4,480, but don't want to sell below 4,475. Set stop at 4,480, limit at 4,475.
Stop-Limit Advantages
Slippage protection - never worse than your limit price
Price certainty if filled
Risk control in volatile conditions
Professional execution for larger accounts
Stop-Limit Risks & Trade-offs
The Risk: No fill guarantee - market may blow through your limit price
Position remains open despite stop price being hit
Could result in larger losses than planned
Requires active monitoring and backup plans
Decision Framework:
Use stop-limits when slippage control is more important than fill certainty
Use regular stops when getting out is more important than price paid
Consider market conditions - stop-limits riskier in trending markets
Trailing Stops: Automated Profit Protection
What Trailing Stops Do
Trailing stops automatically adjust your stop loss as the market moves in your favor. They maintain a fixed distance from the best price achieved, locking in profits while allowing for continued upside.
When to Use Trailing Stops
Perfect for:
Trend following strategies where you want to ride momentum
Profit protection without capping upside potential
Breakeven stops that adjust as position becomes profitable
Automated management when you can't monitor constantly
Example Scenario: Long ES at 4,500, set 20-point trailing stop. If ES rises to 4,530, your stop automatically moves from 4,480 to 4,510, protecting 10 points of profit.
Trailing Stop Configuration
Key Settings:
Trail amount: Distance stop maintains from favorable price (in ticks/points)
Activation price: Price level where trailing begins (optional)
Step size: Minimum move required before stop adjusts
Trail Amount Strategy:
Tight trails (10-15 points): Quick profit taking, more whipsaws
Wide trails (25-50 points): Ride trends longer, fewer false exits
Volatility-based: Adjust trail distance based on recent market volatility
Trailing Stop Best Practices
Setup Considerations:
Start conservatively with wider trails while learning
Consider market personality - ES needs different trails than CL
Account for typical pullbacks in your chosen instrument
Test different trail amounts to find what works for your style
Management Tips:
Monitor initial moves to ensure trailing activates properly
Have backup plans if trailing stop doesn't trigger as expected
Consider manual adjustment in unusual market conditions
Review trail settings regularly based on changing volatility
OCO Orders: Complete Position Management
What OCO (One-Cancels-Other) Orders Do
OCO orders link two orders together - when one fills, the other automatically cancels. Most commonly used to set both profit target and stop loss simultaneously.
When to Use OCO Orders
Perfect for:
Complete exit strategy set at position entry
Bracket trading with predetermined profit/loss levels
Risk-reward planning with clear targets and stops
Automated management reducing emotional decision-making
Example Scenario: Enter long ES at 4,500. Set OCO with sell limit at 4,525 (profit target) and sell stop at 4,480 (stop loss). Whichever hits first fills and cancels the other.
OCO Order Strategy Applications
Risk-Reward Ratios:
1:1 Ratio: 25-point target, 25-point stop
2:1 Ratio: 40-point target, 20-point stop
Custom ratios: Based on technical analysis and market conditions
Entry Types with OCO:
Market entry + OCO exits: Immediate position with preset management
Limit entry + OCO exits: Wait for pullback, then manage automatically
Stop entry + OCO exits: Breakout entry with complete management plan
OCO Order Benefits
Eliminates emotion from exit decisions
Ensures position management even when unavailable to monitor
Forces planning of both profit and loss scenarios upfront
Professional approach used by systematic traders
OSO Orders: Sequential Order Logic
What OSO (One-Sends-Other) Orders Do
OSO orders create a sequence: when the first order fills, the second order automatically submits to the market. Used for complex multi-step strategies.
When to Use OSO Orders
Perfect for:
Entry + management sequences: Position entry triggers automatic management
Multi-leg strategies: Complex trades requiring specific order sequences
Scaling strategies: Initial fill triggers additional orders
Automation: Reducing manual intervention in complex strategies
Example Scenario: Set OSO where buy limit at 4,490 (first order) automatically sends OCO bracket (profit target + stop loss) when filled.
OSO Combined with OCO
Complete Automation Strategy:
OSO parent: Buy limit at support level
OCO children: Profit target + stop loss sent when parent fills
Result: Fully automated entry and exit strategy
This combination creates "set and forget" trading where entire strategies execute without manual intervention.
Advanced Order Management Strategies
Scaling In and Out
Scaling In:
Multiple limit orders at different price levels
Builds position size as price moves favorably
Reduces average cost basis through better entries
Scaling Out:
Multiple limit orders for profit-taking
Takes profits incrementally as targets are reached
Balances profit-taking with trend-riding
Order Sizing and Risk Management
Position Sizing Rules:
Never risk more than 1-2% of account per trade
Adjust order size based on stop distance
Consider volatility when determining position size
Account for slippage costs in size calculations
Order Management Principles:
Plan exits before entering positions
Use appropriate order types for market conditions
Monitor fills actively especially in fast markets
Have backup plans if primary orders don't execute
Common Order Type Mistakes & Solutions
Mistake #1: Wrong Order Type for Market Conditions
Problem: Using market orders in wide-spread or volatile conditions Solution: Check bid-ask spread; use limits if spread > 2 ticks
Mistake #2: Stop Placement Issues
Problem: Placing stops at obvious levels where many others cluster Solution: Place stops slightly beyond obvious levels, account for noise
Mistake #3: Limit Order Misconceptions
Problem: Expecting fills when market only touches limit price briefly Solution: Understand that market must trade through price for guaranteed fills
Mistake #4: Trailing Stop Errors
Problem: Setting trail amounts too tight, getting stopped out prematurely
Solution: Study typical pullbacks in your instrument; set trails accordingly
Mistake #5: OCO Setup Problems
Problem: Incorrect risk-reward ratios or unrealistic target/stop levels Solution: Base levels on technical analysis and historical volatility
Order Type Selection Guide
Quick Decision Tree
Need immediate execution? → Market Order Want specific price? → Limit Order Need protection from losses? → Stop Order
Concerned about slippage? → Stop-Limit Order Want to ride trends? → Trailing Stop Setting profit target + stop loss? → OCO Order Complex multi-step strategy? → OSO Order
Market Condition Considerations
High Volatility Markets:
Favor limit orders over market orders
Consider stop-limits instead of regular stops
Widen trailing stop distances
Be extra careful with order placement
Low Volatility Markets:
Market orders generally safe due to tight spreads
Regular stops usually sufficient
Tighter trailing stops may work better
Focus on precise limit order placement
News Events:
Avoid market orders during major announcements
Use stop-limits if stops are necessary
Consider staying flat rather than using complex orders
Monitor fills extra carefully
Platform-Specific Tips
Order Entry Best Practices
Before Submitting Orders:
Double-check quantity and direction (buy vs sell)
Verify contract month if trading multiple expiries
Confirm price levels match your analysis
Review order type selection for current market conditions
Order Monitoring:
Watch for fills actively especially on stops and limits
Check order status regularly (working, filled, canceled)
Monitor position changes after fills
Keep backup plans ready if orders don't perform as expected
Technology Considerations
Internet Connectivity:
Stable connection essential for order management
Have backup connection for critical trading times
Consider order placement delays during high-latency periods
Platform Performance:
Keep platform updated for optimal order routing
Clear cache regularly if using web-based platform
Monitor platform status during important trading sessions
Risk Management Integration
Order Types and Risk Control
Position Entry Risk:
Use limit orders to control entry prices and reduce slippage costs
Consider stop entries for momentum strategies with clear invalidation
Position Management Risk:
Always have exit plan before entering (stops and targets)
Use OCO orders to automate risk management
Consider trailing stops for trend-following strategies
Account Protection:
Never enter positions without stop losses
Size positions based on stop distance
Use appropriate order types for current market conditions
Emergency Procedures
If Technology Fails:
Know broker phone number for emergency order placement
Have backup internet connection available
Understand how to close positions via phone
Keep position records for manual management if needed
Troubleshooting Common Order Issues
Orders Not Filling
Limit Orders Not Filling:
Check if market reached your price: Market must trade through limit price
Verify order status: Confirm order is working, not canceled
Consider price improvement: Adjust limit closer to market if needed
Review order queue: You may be far back in line at that price
Stop Orders Not Triggering:
Confirm stop price was touched: Check price charts for verification
Check order parameters: Verify stop direction and price level
Review market gaps: Stops may not trigger during gap opens
Consider stop-limit alternative if slippage is excessive
Unexpected Order Behavior
Partial Fills:
Normal for large orders: Market may not have sufficient volume at your price
Check remaining quantity: Understand what portion still needs to fill
Decide on remaining: Cancel remainder or wait for full fill
Adjust future orders: Consider smaller sizes for full fills
Price Slippage:
Review market conditions: Fast markets create more slippage
Consider order type change: Use limits instead of market orders
Check timing: Avoid major news events for sensitive orders
Evaluate broker routing: Ensure best execution practices
Order Management System Issues
OCO Orders Not Working:
Verify both orders are linked: Check order management system
Confirm order types are compatible: Some combinations may not work
Check quantity matching: Both OCO legs should have same size
Review platform limitations: Some platforms have OCO restrictions
OSO Orders Not Triggering:
Verify parent order filled: OSO child only sends after parent fills
Check child order parameters: Ensure child order settings are correct
Review timing issues: Some delay between parent fill and child submission normal
Consider platform capabilities: Not all platforms support complex OSO logic