{"id":37357,"date":"2020-09-30T14:00:34","date_gmt":"2020-09-30T11:00:34","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37357"},"modified":"2025-08-29T15:53:42","modified_gmt":"2025-08-29T12:53:42","slug":"what-are-bracket-orders","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/what-are-bracket-orders\/","title":{"rendered":"What are bracket orders?"},"content":{"rendered":"
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What is a bracket order?<\/strong><\/p>\n

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An order is a trader\u2019s instruction to buy or sell an asset under specified conditions.<\/p>\n

When placing an order, a user sets the quantity of the asset and the desired execution price. If there is a matching order with suitable terms on the venue, the order is executed.<\/p>\n

Crypto exchanges offer different order types: market orders, limit orders and pending orders. The last group includes take-profit and stop-loss.<\/p>\n

Take-profit and stop-loss close a position automatically when a certain price is reached. Take-profit locks in gains; stop-loss limits losses.<\/p>\n

A bracket order is a trading instruction that combines a take-profit and a stop-loss.<\/p>\n<\/div>\n<\/div>\n

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How do bracket orders work?<\/strong><\/p>\n

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Bracket orders let a trader set both a take-profit and a stop-loss at the same time. When one leg is executed, the other is cancelled automatically.<\/p>\n

Example:<\/strong> a trader buys 1,000 BTC\/USD contracts at $10,000. He plans to lock in profit if the asset rises to $15,000, and to avoid excessive loss if the market moves against him by closing the position at $7,000.<\/p>\n

During trading, BTC\/USD falls to $5,000. The stop-loss at $7,000 triggers and reduces the trader\u2019s loss to 20%.<\/p>\n<\/div>\n<\/div>\n

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What are the advantages of bracket orders?<\/strong><\/p>\n

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With bracket orders, a trader defines the target profit (take-profit) and the maximum loss (stop-loss) upfront.<\/p>\n

What happens if you use only one leg:<\/p>\n