What is a Bracket Order?
5paisa Research Team
Last Updated: 06 Sep, 2024 11:34 AM IST

Content
- Understanding Bracket Order in detail
- What are Bracket Orders?
- Advantages of a Bracket Order
- Bracket Orders Vs. Cover Orders
- Summarising Bracket Orders
Understanding Bracket Order in detail
Bracket order is a distinctive type of market order generally placed during intraday trading. This type of order blends a buy order with a target and stop-loss order. These orders are further essential for helping stock traders hold a favourable position after a trading session comes to an end. Nonetheless, the outcome of bracket orders majorly depends on the choice of stock, target levels, and how the trader selects the stop-loss. Given below is a complete guide to what bracket orders are and how they can be distinguishable from cover orders.
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Frequently Asked Questions
Yes, bracket order can be canceled, but only if none of the orders (main, stop loss or target) have been executed.
A bracket order sets both stop loss and target orders while a cover order only sets a stop loss to minimize potential losses.
In crypto, a bracket order allows traders to set a stop loss and target simultaneously for managing risks and potential gains.
A bracketed buy order sets stop loss and target orders once a buy is placed while a bracketed sell order does the same for a sell position.
A bracket order involves placing a primary order with two linked exit orders (stop loss and target), automatically closing the position when either is triggered.