Bracket orders are complex orders that are meant to help to make a profit when trade becomes favorable, or limit the loss when it becomes unfavorable, with predefined values. A bracket order is essentially a combination of three regular orders together—an initial order, a target order, and a stoploss order, which act together to help to achieve the specified profit or limit the loss. Along with the regular order parameters, a bracket order takes additional parameters—target, stoploss, and trailing stoploss (optional).
Please refer to the introduction of the Placing a bracket limit order recipe for an in-depth understanding of the working of bracket orders.
You can use a bracket limit order if you want to place a buy bracket order below the market price or a sell bracket order above the market price. The trailing stoploss feature improvises the positioning of the stoploss order by modifying its price in the direction of...
