Home > Glossary > Closing offset co order

Closing Offset (CO) Order

A closing offset (CO) order is a type of order used in futures markets to close an open position at or near the market's closing price. It is a specific instruction given by traders who want to liquidate their position before the market closes for the day. CO orders are typically used to avoid overnight risk or to lock in gains or limit losses before trading ends. The order is executed at the closing price or as close to it as possible.

Example

A trader holding a long futures position places a CO order to sell their contract at the end of the trading day to avoid the risk of price fluctuations overnight.

Key points

• A CO order is used to close an open position at or near the market’s closing price.

• It helps traders avoid overnight risk or lock in gains or limit losses.

• Commonly used in futures markets to close positions before the trading day ends.

Quick Answers to Curious Questions

To close an open position at or near the market’s closing price, helping traders manage risk and secure gains or limit losses.

Traders use CO orders to avoid the risks associated with holding positions overnight and to ensure that their trades are closed before the market ends.

CO orders are commonly used in futures markets, where traders want to liquidate positions before the trading day ends.