Bracket order — An entry order submitted together with a linked take-profit and stop-loss that attach automatically on fill.
How bracket order works in prop trading
A bracket submits three orders as one instruction: the entry, and an OCO pair of exits that attach the moment the entry fills. It removes the window between being filled and being protected, which is the interval where an unattended position can move against you without a stop in place.
Prop traders lean on brackets because they enforce the risk plan mechanically. The stop distance is set before the trade, so the position size and the dollar risk are decided before emotion is involved, and the take-profit is in place if the move happens while you are away. Check whether your platform's brackets are server-side and whether the firm's risk system respects them during an auto-flatten.
Key points
- Entry plus a linked take-profit and stop, submitted as one instruction.
- Eliminates the unprotected gap between fill and stop placement.
- Forces the risk-per-trade decision before the position exists.
- Server-side brackets survive a platform crash or lost connection; local ones do not.
Also known as
- TP/SL bracket
- OCO bracket
- auto bracket
Frequently asked questions
Should I use bracket orders on a prop account?
For most traders yes. A bracket guarantees the position is protected from the moment it fills, which matters when the daily loss limit and drawdown are enforced automatically and a single unattended trade can end the account.
Do bracket orders work if my platform disconnects?
Only if they are server-side. Brackets managed by your desktop application stop functioning when it does. Most futures platforms indicate which mode they use, and it is worth confirming before you rely on one.
Bracket order is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.