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Bracket order

An entry order that automatically attaches a stop-loss and a take-profit once it fills.

A bracket wraps a trade in its exit rules: the entry, a stop-loss below, and a take-profit above (for a long). When one exit fills, the other cancels, which is the oco-order logic.

Brackets enforce discipline because the risk is defined before you are in and emotional. Most futures and stock platforms support them natively.

Example: buy 1 es contract at 5,000 with a bracket of stop 4,992 (8 points, $400 risk) and target 5,016 (16 points, $800 reward).

Related: oco-order, stop-loss, take-profit, risk-reward-ratio

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