Bracket Order & Cover Order

Bracket Orders (BO) and Cover Orders (CO) are advanced order types in stock trading that streamline trade management and enhance risk management.

Bracket Orders (BO):

BO combines entry, target and stop-loss orders into a single package. Entry order initiates the trade, profit target sets the desired profit level, and stop-loss limits potential losses. It offers a predefined risk-reward ratio and automates trade management, optimizing outcomes.

Cover Orders (CO):

CO integrates entry and stop-loss orders. Entry order enables trade entry, while stop-loss order protects against adverse price movements. CO focuses on risk management, providing built-in protection against losses without constant monitoring. In short, BO and CO are powerful tools for traders, offering efficient trade execution and robust risk management, allowing investors to trade with confidence and precision.