Bracket Order
An advanced order that attaches a take-profit (limit) and stop-loss (stop or stop-limit) to an entry order automatically.
✦ Key Insight
Why It Matters: One-click risk management for new positions; enforces pre-defined exit strategy from the moment you enter, reducing revenge trading. How It Works: When opening a position (market/limit), attach TP and SL; they activate only after entry fills and behave like OCO. Common Mistakes:
✕ Common Misconceptions
It is often mistaken for similar sounding terms, but the technical implementation is distinct.
Detailed Explanation
In Practice
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Stop-Loss (SL) / Take-Profit (TP)
Conditional orders that automatically close a position at a preset price to limit losses (SL) or lock in gains (TP). Often combined as bracket or OCO orders.
One-Cancels-the-Other (OCO) Order
A paired conditional order where executing one automatically cancels the other (typically a take-profit limit + stop-loss).
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