This lesson explores Bracket orders, which function is combining a parent order (buy or sell) with two “child” orders placed in the opposite direction. These child orders help you lock in profits and limit potential losses.
Bracket orders automate two key risk management strategies:
- Profit Taking: A sell order (for a long position) or a buy order (for a short position) is placed at a predetermined price level to capture profits if the market moves favorably.
- Stop Loss: A sell order (for a long position) or a buy order (for a short position) is placed at a specific price level to limit potential losses if the market moves against your position.
The lesson provides a step-by-step guide on creating Bracket orders within the platform. You’ll learn how to set the parent order details (buy or sell, quantity, price), and then use the “Advanced” and “Attach” functionalities to activate the Bracket feature. This will allow you to define the profit-taking and stop-loss prices for the child orders.
The lesson will also explain how to identify the parent and child orders within the order details.