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Bracket orders

Stop and go

Sometimes you want to play it safer by clearly defining your risk level for an individual trade. Bracket orders allow you to set your target exit prices so you have peace of mind that your trades are being managed, without having to watch your stocks all day. Remember, just like any stop order, bracket orders are not fail proof. Always monitor your account to ensure you’re orders are in good standing.

Here’s how it works: when your stock reaches your desired high or low, it’ll send an order to the market. Added bonus: since you set your maximum stop-loss price at the time of the order, you won't allow emotion to affect your trading decisions. How’s that for market smarts?

FAQs

What are bracket orders?

A bracket order allows you to place simultaneous stop and limit orders. A stop order offers some protection in case the price of a security moves against you and you no longer want to hold onto it. A limit order lets you to take profits when your security reaches a desired target price.

Example: you want to buy stock XYZ at $20, sell when it reaches $25, or let it go if it dips below $18. Bracket orders give you the tools to set all these parameters within a single order entry window.

How do I create a bracket order?

You can create a bracket order in IQ Edge. Once you enter the security name, you can determine the quantity you want to trade, the order type, the limit, the duration, route and sub route.

You can create a bracket order through your IQ platform
Can I attach a bracket order to an existing position?

You sure can. Bracket orders can be attached to active open orders or existing positions through IQ Edge. You can also modify or cancel bracket orders on your Questrade platform. Visit our help section on bracket orders for full details on how to do so.

Can I modify or cancel a bracket order?

Absolutely. An advantage of bracket orders is that you can modify their parameters without having to manually cancel or create a new bracket order. Here’s a step-by-step on how to change your bracket orders.

Want to learn more? Visit our help and how to.