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.
Video glossary
Bracket Order
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.
