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A single ticket that combines an entry with two exit orders — an upside profit-taker and a downside stop-loss — wired together so when one exit fills, the other automatically cancels.
Why It Matters
Most beginner trading mistakes happen on the exit, not the entry. A bracket order forces you to decide your profit target and your stop-loss before the trade opens — when the emotional pressure of a moving price hasn't arrived yet. It packages three orders into one ticket: the entry, an upside limit order, and a downside stop. The two exits are linked as an OCO so the moment one fills, the other is canceled automatically. Not every broker offers brackets, and the naming varies (some call them OTO or OTOCO).
Key Points
- Combines entry + profit-taker + stop-loss in one ticket
- The two exits use OCO so one cancels the other
- Doesn't protect against gaps — the stop is still a regular stop
- Broker support and exact behavior vary; paper-trade first
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Bracket Orders & OCO
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Related Terms
Common Questions
A single ticket that combines an entry with two exit orders — an upside profit-taker and a downside stop-loss — wired together so when one exit fills, the other automatically cancels. Most beginner trading mistakes happen on the exit, not the entry. A bracket order forces you to decide your profit target and your stop-loss before the trade opens — when the emotional pressure of a moving price hasn't arrived yet.
Most beginner trading mistakes happen on the exit, not the entry. A bracket order forces you to decide your profit target and your stop-loss before the trade opens — when the emotional pressure of a moving price hasn't arrived yet. It packages three orders into one ticket: the entry, an upside limit order, and a downside stop. The two exits are linked as an OCO so the moment one fills, the other is canceled automatically. Not every broker offers brackets, and the naming varies (some call them OTO or OTOCO).
Combines entry + profit-taker + stop-loss in one ticket
The two exits use OCO so one cancels the other
Doesn't protect against gaps — the stop is still a regular stop