Definition
A bracket order combines an entry order with two exit orders: a take-profit limit order above and a stop-loss order below (for long positions). When one exit triggers, the other cancels automatically (OCO - One-Cancels-Other). It automates risk management for active traders.
Example
Buy at $50 with bracket: take profit at $55, stop-loss at $47. Entry fills, both exits are active; first triggered cancels the other.
FAQ
What is Bracket Order?
A three-part order with entry, profit target, and stop-loss.
Why is Bracket Order important?
Bracket Order helps investors evaluate order types and make more informed decisions.