About Brackets

Brackets allow you to integrate your risk management strategy directly into the creation of an equity or option order. Using brackets you can predefine profit and loss targets for trades where, if those targets are met, the software will automatically send an order to exit the position.

To use brackets, check Spec Cond & Brackets in the Trading Window when entering an order.

See examples of Bracket orders or take the Self-Guided Tutorial.

 

Bracket orders are conditional orders you can attach to your stock or option orders. They consist of a primary order and up to three contingent orders, which if triggered, will close out the position opened by the primary order. Brackets can provide automated risk protection for your open positions regardless of whether you are logged on to the software.

When you check Spec Cond & Brackets and click Buy or Short (or for options, Buy to Open or Sell to Open), a second window opens, where you can specify the terms of the bracket order(s).

TIP: Brackets can also be added to orders initially opened without brackets. See Managing Bracket Orders for instructions.

Stock symbols and price and volume data shown here and in the software are for illustrative purposes only. Charles Schwab & Co., Inc., its parent or affiliates, and/or its employees and/or directors may have positions in securities referenced herein, and may, as principal or agent, buy from or sell to clients.

 

Certain aspects of the bracket orders are predefined:

You may establish up to three types of exits:

 

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