Use bracket orders to take your cryptocurrency trading to the next stage

If you’re a seasoned trader whose trading strategies are on the sophisticated side of things now is the time to ensure that your trade entry and exits need to be redesigned with a more sophisticated nuance. Isn’t it, visit us?

The most basic types of order can satisfy the majority of requirements for execution of trades. However, if you want to tweak your trades, there are a variety of advanced order types are readily available. These advanced order types can be divided into two main categories: The orders can be divided into two categories including conditional and time-based orders. Orders that are conditional will only be filled if there are certain conditions. Durational orders, on contrary, indicate that your purchase will be completed within a specific timeframe.

If you’re an experienced trader, expertise, you can easily make trades. However, managing them can be complicated. This is where bracket orders can assist you.

Bracket order

Brackets are conditional orders which are useful in intraday trading. Three combined orders are bundled into one order. These orders, as their name implies, are used to place trades in brackets. This order is comprised of two additional direction orders that are in addition the initial order. This is an excellent strategy for both buy-and-sell and sell orders.

Brackets in category order

Initial Order

This is a form of limit order used to determine the starting position

Take Profit or Make a Target Order

This is the sort of situation a trader wants to profit from and to take advantage of his position and profits.

Stop-Loss Order

This is used in situations where the market is not a good fit and you wish to hedge the loss.

Let’s look at this through an example:

If the first order is buy order Then both targets and stop-loss orders would be the sell orders. If the first order is a buy order, the next and the third order will be a sell order.

How bracket order works?

As discussed above, bracket order involves three different kinds of conditional order types, which include targets exit, stop-loss exit, and trailing stop exit. Buy or sell orders is instantly submitted to close the trade if the criteria is fulfilled according to established guidelines.

So, if you have purchased an asset at $100. You’ll also have to complete two more orders. One of these will be a gain. It states that the value of the asset has to be at a certain point in order to trigger it. $130 your gain will be recorded and the order is automatically activated.

The final order you can place is the stop-loss. If the trade doesn’t work out, and you wish to limit your losses in the event an error the placing of a stop-loss for $95 can be beneficial.

All three orders, namely the purchase order, the targeted order to profit as well as the stop-loss orders, are combined as bracket orders.

The most fascinating aspect of this type is that, between the target order and stop-loss, when one of them gets triggered it will cause the other to be automatically cancelled. Bracket orders are also termed as “OCO” (One Cancels the Other) orders. It is particularly beneficial for traders with a busy schedule. Consider one more example. Let’s say you purchased USD in ETH for $1200. It is possible to set an immediate profit goal of 1,300 dollars, and a loss stop at $1100.

The bot that trades crypto automatically creates a limit sell order of $100 over the entry price and 20 dollars below. The trader is able to buy ETHUSD for $1,200. If the price rises to $1300, the limit sell order will trigger to give a $100 profit per coin. This would also cancel out the stop loss that was set at $1,180. So, you don’t have any additional orders that aren’t filled.

It’s the same thing to the negative. A drop of $1,180 would cause the stop loss to be activated and erase the $1,300 sell order.

Advantages of bracket order

It is possible to protect your earnings and limit losses by bracketing your request with stops or trailing stop as well as a profit target. If one of the conditions is met, a request to quit the position will be automatically sent.

Discover the other benefits of ordering brackets:

Reduces the chance of suffering unbearable loss with predefined stop-loss orders

The software allows traders to determine the target and stop-loss manually with one click.

You can boost your earnings through the use of the trailing stop loss each time the price moves in a positive direction.

These orders are automatic and protect the traders.

Brackets orders offer automatic risk management

It offers maximum possible options and is available in every type

The drawbacks of bracket orders

These orders do not allow you to put a limit on the exit.

You have to place the bracket order at the exact price at which the stock is currently trading, since entry via a stop-loss trigger will not be allowed.

There is no way to modify your trade after you’ve made a transaction, and you must close your account to exit

The orders were confusing to understand. They are easy to understand and traders typically use them as a way to reduce risks. These orders can be a huge help for clients as they do everything at once such as entry, profit target and stop loss. The client does not have to keep track of the trades or constantly check the prices. They can also serve as a unified set of instructions that can trigger or cancel their respective actions when predefined conditions are fulfilled.

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