Bracket orders are designed to help limit your loss and lock in a profit by \u201cbracketing\u201d an order with two opposite-side orders. These two opposing child orders become active when the parent order executes, but only one of them can be triggered, and if it does, the other is immediately cancelled.<\/p>\n\n\n\n
A parent BUY order is bracketed by a high-side limit order to sell \u2013 a profit-taker \u2013 and a low-side stop loss order aiming to sell in order to limit open losses.<\/p>\n\n\n\n
A parent Sell order is bracketed by a low-side limit order to buy\u2013 a profit-taker \u2013 and a high-side stop loss order aiming to buy in order to limit open losses.<\/p>\n\n\n\n
In this illustration, let\u2019s assume you want to pay a specific price to buy shares in a company. Let\u2019s say it\u2019s the tech sector giant Amazon. Once the investor chooses the symbol and selects buy in the order window, they choose the quantity, order type, in this video lesson the investor chooses to use a limit order, and price. Please note bracket orders may not be available for all order types.<\/p>\n\n\n\n
To limit any losses, this order should include a Stop Loss to sell the position at a specific price below the entry price, as well as a Profit Taking order should the share price rise to a predetermined level above the entry price. Underneath price the investor clicks on the plus sign next to \u201cAttached Orders\u201d and clicks on the box next to \u201cProfit Taker\u201d and selects a value above the parent order price, notice when the price is adjusted the profit percentage and amount is updated. Next choose the Time-in-Force, and if they would like the order to be active outside regular trading hours.<\/p>\n\n\n\n
The investor then clicks the box next to Stop Loss and selects a value below the parent order price and the Time-in-force, trading is not available outside regular trading hours. When satisfied with both orders, the investor can either click the preview button to review the orders or select Submit. In this case the investor clicks preview and then clicks transmit once satisfied with the order details.<\/p>\n\n\n\n
*Remember<\/strong> untriggered GTC orders are automatically cancelled by the system at the end of the calendar quarter following the one in which they were originally entered.<\/p>\n\n\n\n Orders can be monitored by clicking on \u201cOrders\u201d on the Portfolio page.<\/p>\n","protected":false},"excerpt":{"rendered":" IBKR bracket orders are sophisticated trade management tools that automatically create stop-loss and profit-taking orders once an initial entry order is filled, allowing traders to predetermine both their maximum loss and profit targets. These conditional orders remain active until either the stop-loss or profit-taking price is reached, ensuring disciplined risk management without requiring manual intervention after the position is established.<\/p>\n","protected":false},"author":1134,"featured_media":232753,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":true,"footnotes":""},"contributors-categories":[13576],"traders-academy":[13127,13128,13132],"class_list":{"0":"post-232751","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-interactive-brokers","7":"traders-academy-advanced-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n