Bracket Order
An entry order submitted together with its stop loss and take profit.
Also called: bracket · entry with stop and target
In plain language
A bracket packages all three decisions into one submission: the entry, the level where you are wrong, and the level where you are right.
Once the entry fills, both exits go live. When either one triggers, the other is automatically canceled.
The practical value is that it forces the exits to be defined before the position exists, when you are still thinking clearly.
Why it matters
Brackets make the disciplined version of a trade the default version. The stop is already working before you have any emotional stake in the outcome.
Common mistakes
- Placing the bracket and then manually widening the stop once the trade is open.
- Using identical bracket distances across instruments with very different volatility.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
A pair of orders where filling one automatically cancels the other.
A predefined exit that closes a losing trade before the loss becomes serious.
A predefined price where a winning trade is closed automatically.
The price at which you open a position.
A written set of rules defining what you trade, how you size it, and when you exit.