Bracket order

A bracket order is a position protected on both sides by two exit orders: a stop-loss below the entry of a long (above for a short) and a take-profit on the other side, linked so that when one fills the other is cancelled. The bracket defines the risk and the reward of the trade before the market decides which one is reached.

Senzoukria · Glossary · Updated September 2026

Anatomy of a bracket

  • The entry: a market, limit or stop order that opens the position.
  • The loss-side exit: a stop order placed where the trade idea is invalidated.
  • The profit-side exit: a limit order placed where the expected move is considered complete.
  • The link: when either exit fills, the other is cancelled so the account does not end up with a naked order.

Where the link lives

The cancel-the-other behaviour can be handled by the broker's server, by the exchange where supported, or by the platform on the trader's machine. The difference shows during a disconnect: a server-side link keeps working when the application is offline, a client-side link does not. Knowing which one your connection provides is part of the risk plan, not a detail.

Before or after the fill

A bracket computed before the entry fills assumes an entry price. If the entry is a market order in a moving book, the real fill can differ, and a stop placed a fixed distance from the assumed price no longer risks what was planned. Attaching the exits to the open position, at distances measured from the actual fill, tells the truth about the risk taken. The cost is a short window between fill and protection during which the position is unprotected; the trader accepts it knowingly rather than being lied to by a pre-computed bracket.

In Senzoukria

The order ticket on the Trading page does not place a bracket ahead of the fill. Its "Stop (ticks)" and "Risk ($)" fields are a sizing aid only, suggesting a quantity so that a stop of that width risks about the budget entered; nothing there sends an order. Protection is attached to the open position: "Set stop / target" in the broker account panel, or a right-click on the chart at the level wanted. The chart shows the resulting lines as LONG / SL / TP pills, and the desk's "Protections" stage ("Exit orders received") lists the "Loss-side exit" and "Profit-side exit" reported by the broker for each position, with "{n} other working orders on this side" counted separately. A stop counts only when the broker lists it among the working orders; receipt does not guarantee coverage or execution.

Common mistakes

  • Trusting a bracket drawn on the chart before the broker acknowledged both exit orders.
  • Sizing from a planned entry price when the entry is a market order in a fast market.
  • Assuming the one-cancels-the-other link survives a disconnect when it runs on the client.
  • Setting the target from a reward ratio alone rather than from a level the market has shown.

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Frequently asked questions

Is a bracket order the same as an OCO order?
An OCO (one-cancels-the-other) pair is the exit half of a bracket: two orders linked so that a fill on one cancels the other. A bracket adds the entry order that opens the position the pair protects. In everyday use the terms overlap, and a position with a linked stop and target is described as bracketed.
Why would a platform refuse to place the bracket before the fill?
Because the entry price is unknown until the fill, and a stop distance measured from a guessed price misstates the risk. Placing the exits on the actual position keeps the displayed risk honest at the price of a short unprotected window after the fill.
What if only one exit is reported by the broker?
Then the position is not bracketed, whatever the chart suggests. Check the working orders at the broker and add the missing exit. Missing or unequal remaining quantities on the two sides require the same check, because a partial fill can leave the exits mismatched.

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