A Bracket Order is a special type of order through which the stoner can take anintra-day position and take advantage of redundant exposure while being defended through a stop loss order and a profit ideal( profit booking) order.
The system will place three orders contemporaneously a limit order( 1st leg), a corresponding stop loss request order which would only get touched off at the specified stop loss detector price( 2nd leg), and a matching profit ideal limit order which only get touched off at the specified profit objective price( 3rd leg).
still, the stop loss order gets executed as a request order and the 3rd leg( the profit objective order) automatically gets cancelled, If the stop loss detector price is hit. also, if the profit objective detector price gets hit, the stop loss automatically gets cancelled.
The combination of all three of these orders being placed contemporaneously is known as a Bracket order. type Orders help you limit any implicit losses that could be incurred on a position while also allowing you book gains at your specified target