Minimizing Losses through Bracket Order Trades on TrailingCrypto

A bracket order is a kind of order that allows a trader to execute a trade comprising a target price and stop loss. They are meant to help traders minimize losses while at the same time locking profit through bracketing of a trade order with binary reverse-side orders. It resembles bracket helping traders in the automation of trades and it involves executing the profit-taking and stop-loss orders concurrently once a trader executes their main order.

For instance, once a profit-taking order is triggered then it means the stop loss order will be cancelled automatically. On the other hand, the same will apply once the stop loss is executed the profit-taking order will be exited. Sometime a bracket order will be referred to as the order-send-order or custom OSO.

How a bracket order works on TrailingCrypto

Executing this kind of order is quite simple and the limit order is executed first and then stop loss and profit-taking orders are triggered. On TrailingCrypto you cannot directly select this order but there are other options that one can use to tailor their bracket orders. The trader will have to use both the order-cancel-order and stop buy which are available on the order type selections.

To place an order the trader has to determine the price limit where they wish to place a stop buy on a trade. On the TrailingCrypto platform, the trader should click the STOP Buy tab on the order type selection menu for them to input the preferred price. After inputting the price then you can click the order-cancel-order type to place the desired OCO price level.

Scenarios on the execution of the order

Sometimes when the limit order has not been triggered after the set time then the trader will automatically cancel. However, the limit order can be executed but the profit-taking order and stop loss will remain pending if the price doesn’t touch the profit take and stop-loss levels. If the orders are still pending by let’s say 3:15 pm the order will be turned into a BUY/SELL order and the trade will close at the market price as of 3.15 pm.

Alternatively, the limit order can be executed and the profit-taking order also triggered. This happens if the price moves and reaches the set profit taking level. If this happens then the trading position will square off and the trader books profits as the stop loss get canceled.

In another scenario, the limit order will be executed and the stop-loss order triggered. This means that as the price moves towards the stop-loss mark the stop loss order will be triggered once it touches the level and that means the position will be squared automatically with the trader booking losses.

Short and long orders

You can have a long or short bracket order. In a long order, the trader bets on the price moving up, and they will buy low and expect to sell high and in this case, the limit order is more than the stop-loss order. On the other hand in short order, the trader is aiming to benefit from a downward price movement by selling high and buying low and in this case, the limit order is lower than the stop-loss order.