Take Your Crypto Trading Strategy to a Profitable Level by Using Bracket Orders

Trading cryptocurrencies in 2023 have become quite popular among seasoned traders, beginners and expert traders. Everyone can place trades hassle-free by making use of advanced tools and orders. But you know, sometimes it becomes quite difficult to manage all such trades, and it requires some profound knowledge as well as expertise to earn good profits.

Traders are always looking for some efficient ways to place multiple trades on the go without facing any kind of unnecessary risks or missed opportunities. They make use of limit orders to avoid risks, but for those traders who are looking for additional security checks or who wish to increase their chances of earning good profits, considering bracket orders is a better option. These orders are gaining huge popularity among crypto traders across the globe. Bracket orders limit the loss and lock in profits by bracketing an order with two opposite orders. The best crypto trading terminal, like TrailingCrypto, supports this order type for multiple exchanges to help their traders to earn good profits. Let’s understand about this order type in deep:

Bracket orders

A bracket order is a kind of market order that could be placed by bracketing the original order with limit orders. This order type combines buy order, stop-loss order, and a target order. Bracket order executes three orders to save time and frustration of the traders by bringing all trades in a single task. For example, a trader will place a sell order with two buy orders, and vice versa.

This is a conditional order involving entry, target, and a stop-loss order. Bracket order trading is the safest way to trade in intraday as it limits the risks of losses from the trade.You can’t use these orders for regular trading. In this order type, the order’s outcome depends only on the crypto asset and the price levels selected. You can use such orders smartly for futures trading on multiple exchanges.

Traders can make use of bracket orders smartly by considering crypto trading signals offered by the best trading platforms. Well, bracket orders aremultiple orders which traders can submit simultaneously to buy and sell the same crypto asset. This order contains conditions that automatically trigger buying or selling of the crypto asset whenever the predefined conditions are met. This further helps a trader to lock in profits and limit losses even if the asset prices move whenever the trader is not available on the system.

How to place a bracket order?

A crypto trader can place a bracket order while placing a limit or market order. In this order type, the trader needs to tick the Bracket Order checkbox on the exchange they are using from where they are actually placing this order. Now fill in the values in the bracket order box and if the trader chooses not to set a bracket order while placing an order, the trader cannot modify the order whenever it is an open order.

All that we can say is that modifications are not possible in this order type. The bracket orders which crypto traders can place via TrailingCrypto are OCO orders and OSO orders.

Bracket orders can be used by traders in two ways, including:

· A buy bracket order is usually bracketed by a high-side sell order as take profit and a low-side sell order i.e. stop loss order. Generally, traders can use this order for long trades

· On the other side, a sell bracket order will be bracketed by a low-side buy which is a take profit order, and a high-side buy order which is used as stop-loss order. This order type is used by traders for the short trades

These orders usually work well in volatile market trends. When it comes to setting a bracket order via TrailingCrypto, you may select the custom OSO order and then place a stop buy as your primary order while the OCO order can be used as the secondary order. You can use these orders smartly and beneficially by using crypto trading signals from this platform.

Pros of placing a bracket order

By bracketing any order, the trader can protect himself from any kind of losses and secure their way of earning good profits. If one of the preset conditions of bracket orders is met, a request to exit/quit from any position is sent immediately. Let’s have a look at the major benefits of bracket orders in your crypto trading strategy:

1. The bracket order is an automated order allowing traders to draw down a profitable crypto trading strategy prior to or while deciding a position. In this order type, you can position the option orders here with clearly defined gains and failure exit levels, or adding a bracket after you place the order.

2. These orders are automatic, which can help its traders to trade efficiently even if they are not available on your system.

3. Bracket orders ensure the maximum possible options are available in any order.

4. Automatic risk management is provided for the open positions.

5. It allows traders to place three orders simultaneously at one go.

Cons of using bracket order

· This order type doesn’t allow traders to put limit orders during exits

· Entry via stop-loss is not permitted here

· Order modification is not possible once after entering the order

· Order cancellation is not possible

· It’s an intraday trading order