Market Insights

Managing trades efficiently is crucial for every trader, and TradeStation’s Matrix offers a streamlined way to help take control of your positions from start to finish. As traders know, one of the biggest challenges in trading is managing emotions while holding open positions. Establishing exit orders—such as profit targets and stop losses in advance, you can help your plan run its course and help reduce the impact of emotional decision-making. 

Why Use Exit Orders?

• Setting specific gains or losses at which to close a trade helps you stick to your strategy and avoid second-guessing. 
• Exit orders automate your risk management, allowing you to focus on finding new opportunities instead of constantly monitoring open trades. 

How to Place Stop Losses in the Matrix

The Matrix makes it easy to place stop loss orders directly from the profit and loss column. Here’s how: 

• Hover over the desired loss amount in the profit/loss column. 

• Click to place your stop order at that level—this sets a clear risk threshold for your trade. 

• If you need to adjust your stop, simply drag it to a new price point. You can also cancel with a single click if your strategy changes7. 

This proactive approach ensures that risks are managed as the market moves, not after the fact. 

Setting Profit Targets for Capturing Gains

To lock in profits, you can place a profit target above your entry price: 

• Click in the ask column at your chosen profit level to set your target. 
• This creates a limit order that will execute automatically if the market reaches your specified price. 

Coordinating Profit Targets and Stop Losses with OCO Orders

For a comprehensive exit strategy, the Matrix allows you to set up OCO (One-Cancels-the-Other) orders. This means if your profit target is hit, your stop loss is automatically canceled—and vice versa. Here’s how to set it up: 

• When your position is open, select the exit template OCO dropdown. 

• Click the ellipsis (…) to customize the distance for both your profit and stop orders. 
• This setup ensures that only one exit order will execute, protecting you from unexpected market swings. 

Practice with the TradeStation Simulator

If you’re new to using these features, TradeStation’s trading simulator lets you practice placing, adjusting, and canceling orders without risking real capital. This is a great way to build confidence and refine your process before trading live. 

Key Benefits of Using the Matrix for Exit Orders

• Emotion-Free Trading: Automated exits help keep emotions in check, so you can stick to your plan. 

• Flexible Adjustments: Drag-and-drop functionality makes it easy to adapt your orders as the market evolves. 

• Comprehensive Risk Management: Combine profit targets and stop losses using OCO setups for seamless execution. 

• Practice Safely: Use the simulator to master order placement and strategy without financial risk. 

By leveraging the Matrix’s powerful order entry tools, TradeStation users can manage trades efficiently, maintain discipline, and respond to market changes with confidence. Get to know the TradeStation platform in greater detail by exploring the our QuickStart series. 

Disclosure: Options and margin trading involve significant risk and are not suitable for all investors. This content is for educational and informational purposes only and does not constitute investment advice. Review all relevant disclosures and understand the risks before trading.  

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