Bracket order
A bracket order combines an entry order with two linked exit orders, a profit-taking above the entry price and a below it, submitted together as one package. Once the entry order fills, both exit orders become active at the same time. If either one executes, the other is automatically canceled, since the position is now closed and the remaining order is no longer needed.
The structure lets a trader define both the target and the a trade at the moment it is placed, rather than having to watch the position and manually enter exit orders later. If the rises to the profit target, the take-profit order fills and locks in the gain. If it falls to the stop level instead, the fills and limits the loss. Either way the position closes itself without further action, which is useful for traders who cannot watch every position throughout the day.
Bracket orders are common in both and trading platforms aimed at active traders, and they enforce a discipline that can be easy to abandon in the moment, since the exit levels are locked in before the trade even starts moving. The tradeoff is that a bracket order still relies on the stop-loss leg behaving like a normal , which can fill at a worse price than intended during a fast, gapping move.