# Bracket Orders > A bracket order attaches a stop loss and a profit target to an entry, and cancels one when the other fills. Learn how to set one up, with a worked example. Source: https://learn.tradelabsai.com/orders/bracket-orders/ Track: Orders and Execution · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Bracket Orders", https://learn.tradelabsai.com/orders/bracket-orders/ A bracket order is an entry order with two exit orders attached: a stop loss below and a profit target above for a long trade (the reverse for a short). When the entry fills, both exits become active. When either exit fills, the other is cancelled automatically. A bracket lets you define the entire trade, including the worst case, before you click buy. ## The three parts | Part | Order type | Purpose | |---|---|---| | Entry | Limit, market or stop | Opens the position | | Stop loss | Stop or stop-limit | Closes the position if the trade fails | | Profit target | Limit | Closes the position at your target | The two exits are linked as a one cancels other (OCO) pair, so you can never end up with both filled. See [OCO Orders](https://learn.tradelabsai.com/orders/oco-orders/). The link between the entry and the exits is a one triggers other relationship. See [OTO and OTOCO Orders](https://learn.tradelabsai.com/orders/oto-and-otoco-orders/). ## A worked bracket order **Example: A long bracket on a pullback** A stock trades at $88.40. Your plan: buy a pullback to $86.00, stop below the swing low at $84.60, target at $90.20. **Entry:** buy limit at $86.00 for 70 shares. **Stop:** sell stop at $84.60. Risk: $1.40 × 70 = $98. **Target:** sell limit at $90.20. Reward: $4.20 × 70 = $294, a 1 to 3 [Risk/Reward Ratio](https://learn.tradelabsai.com/risk/risk-reward-ratio/). If the price never reaches $86.00, nothing happens. If it fills and then rises to $90.20, the target fills and the stop is cancelled. If it falls to $84.60 instead, the stop fills and the target is cancelled. ## Why bracket orders help - **They enforce your plan.** Stop and target are set when you are calm, not decided in the moment. - **They protect you when you are away.** The position is managed even if you are not watching. - **They remove a classic mistake:** entering without a stop "just for a moment". - **They make your risk exact.** You know the loss if the stop fills before you enter. See [Position Sizing](https://learn.tradelabsai.com/risk/position-sizing/). ## Adjusting a bracket after entry Most platforms let you modify the stop and target after entry. Common adjustments: - **Move the stop to breakeven** once the trade reaches a set profit, such as 1R. See [Moving Your Stop: Breakeven and Trailing Stops](https://learn.tradelabsai.com/position-management/breakeven-stop/). - **Convert the stop to a trailing stop** to follow a strong move. See [Trailing Stop Orders](https://learn.tradelabsai.com/orders/trailing-stop-orders/). - **Split the target** into two, taking partial profit early and leaving the rest to run. See [Scaling Out and Partial Profits](https://learn.tradelabsai.com/position-management/scaling-out-and-partial-profits/). Follow the same rule as always: move stops only in the direction that reduces risk. ## Things to check on your platform - **Time in force:** make sure the stop and target are GTC if you plan to hold overnight. Day only exits disappear at the close and leave you unprotected. See [Time in Force: Day, GTC and GTD Orders](https://learn.tradelabsai.com/orders/time-in-force/). - **Partial fills:** if your entry fills partially, check that the exits adjust to the filled size. - **Server side vs local:** some platforms hold bracket logic on the broker's servers; others only on your computer, which stops working if your computer or connection goes down. - **Extended hours:** stops may not trigger outside regular hours. **Watch out: Brackets do not stop gaps** If a stock gaps below your stop at the open, the stop fills at the opening price, not at your stop. A bracket defines your plan; position size still has to account for gap risk, especially through earnings. ## Frequently asked questions ### What is a bracket order? An entry order with an attached stop loss and profit target, where the two exits cancel each other when one fills. ### Can I use bracket orders for short trades? Yes. For a short, the stop sits above the entry and the target below it. ### Do all brokers offer bracket orders? Many active trading platforms do, sometimes under names like "attached orders" or "OTOCO". Some basic apps do not. ## Sources - Wikipedia, [Order (exchange)](https://en.wikipedia.org/wiki/Order_%28exchange%29) ## Continue learning - Next lesson: [OCO Orders](https://learn.tradelabsai.com/orders/oco-orders/) - Previous lesson: [Opening and Closing Orders: MOO, MOC, LOO, LOC](https://learn.tradelabsai.com/orders/opening-and-closing-orders/) - Related: [Opening and Closing Orders: MOO, MOC, LOO, LOC](https://learn.tradelabsai.com/orders/opening-and-closing-orders/): Market on open, market on close, limit on open and limit on close orders trade in the opening and closing auctions. Learn how they work, cut-off times and uses. - Related: [OCO Orders](https://learn.tradelabsai.com/orders/oco-orders/): A one cancels other order links two orders so that when one fills, the other is cancelled. Learn OCO exits, OCO breakout entries and how to avoid double fills. - Related: [OTO and OTOCO Orders](https://learn.tradelabsai.com/orders/oto-and-otoco-orders/): OTO orders send a second order only after the first fills; OTOCO adds an OCO pair of exits. Learn how these conditional orders automate a full trade plan. - Related: [Stop Orders](https://learn.tradelabsai.com/orders/stop-orders/): A stop order becomes a market order once a trigger price trades. Learn how stop losses and buy stops work, where to place them and why stops can slip. - Related: [Limit Orders](https://learn.tradelabsai.com/orders/limit-orders/): A limit order trades only at your price or better. Learn how buy and sell limits work, why they may not fill, queue priority and how to set a smart limit price. - Related: [Risk/Reward Ratio](https://learn.tradelabsai.com/risk/risk-reward-ratio/): The risk/reward ratio compares a trade's potential loss with its potential gain. Learn the formula, how it links to win rate, break even maths and common traps. - Related: [Building a Trading Plan](https://learn.tradelabsai.com/start-here/building-a-trading-plan/): A trading plan is your written rules for what, when and how much to trade. Learn the parts of a good plan, see a complete example and build your own.