What is a bracket order and how to use it?
Bracket orders set predefined price targets as part of an opening trade, allowing you to not wait until a trade is executed to create stop loss and take profit orders. This feature is available for both buying and selling market orders.
With a single opening order, you can set a stop loss trigger, take profit trigger, or both. The bracket order triggers create market orders.
Creating bracket orders is easy. When placing a market order, select triggers and enter the desired take profit price and/or stop loss price, either in terms of a dollar price or a percentage from the executed price.
For a long position, the take profit trigger will be positioned above the current price, while the stop loss will be positioned below. Conversely, for a short position, the take profit trigger will be positioned below the price and the stop loss will be positioned above.
An order type that enables traders to easily open a risk-managed position when initiating a new order. A Bracket order is comprised of: 1) a market order to buy or sell a specified asset that will immediately execute, 2) a take profit market order, and 3) a stop loss market order.
Take Profit Order
A conditional order type that defines the price at which to close an open position for a profit.