Bracket Order
A bracket order is an intraday trading tool that combines three legs of orders to manage risk and reward. A first leg of buy or sell order once executed will auto place a 2nd leg of target order to exit and secure profits, and a 3rd leg of stop-loss order to cap losses. Among the target and stoploss orders execution of one will auto cancel the other. This setup automates the trade, locking in potential gains while limiting downside exposure. Ideal for volatile markets, it ensures discipline by predefining exit points, making it a popular choice among traders aiming for efficiency and control in fast-paced sessions.
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