Bracket orders have turned out to be a very important tool for traders who seek to control risk while at the same time trying to make profits consistently. In the copy trading ecosystem, the application of a bracket order means that your buying and selling will be automated; thus, both the loss cut and the profit target will be executed without the need for continuous watching. The emergence of trusted platforms such as Combiz copy trading software has made the process of placing bracket orders very simple indeed.
A bracket order is a Type of order which consists of three parts: an entry order, a stop-loss order, and a profit target order. When you make a bracket order, the system automatically activates the stop-loss and target orders right after your entry order is fulfilled. This way, your possible losses are limited, and your gains are secured at the preset levels.
Using a copy trading app like Combiz enables you to duplicate these bracket orders over several accounts; thus, it becomes a perfect choice for both beginners and professional traders.
Making a bracket order in copy trading is an uncomplicated task if you use the right procedure. Here is a guide with steps to be followed:
1. Open the Order Placement Page
Firstly, go to the section of your broker's platform that allows you to place an order. Select the security for trading, which can be a stock, commodity, or index according to your trading strategy.
2. Select Bracket Order
Choose "Bracket" or "BO" from the order type dropdown list. This action indicates that you are placing a bracket order with automatic stop-loss and target execution; thus, the system knows your intention.
3. Enter the Entry Price
Indicate the price at which you wish to enter the position. This can be either buying or selling. It is advisable to make this price coincide with your market analysis or plan, as the price you set will be the only occasion for executing the trade.
4. Give the Stop-Loss Price
A stop-loss price is a must for a bracket order. It sets the point where your trade will automatically shut off if the market goes against you. Stop-loss management is very important in loss minimisation, especially in volatile markets.
5. Set Target Price for Profit
Determine the profit target at which your trade will close automatically to secure gains. By designating a target price, you ensure that profits are taken without relying on manual intervention.
6. Confirm and place order.
Review all the particulars, such as entry, stop-loss, and target prices. Once approved, the order will be sent by the system to the exchange. The stop-loss and target orders will also be activated automatically once the entry order is filled.
Copy trading benefits a lot from the use of bracket orders, as they offer both risk management and automation at the same time. Do consider using them for the following reasons:
Incorporating bracket orders in copy trading is an intelligent move to reduce risks and maximise profits automatically. With the Combiz copy trading software, traders from different backgrounds can easily perform entry, stop-loss, and target orders. The use of bracket orders can enhance your trading discipline and strength to a great extent no matter if you are a novice or an experienced trader.
By using a trustworthy copy trading app, you can incorporate bracket orders into your trading plan to assure the highest profit with the least risk, thereby making your trading journey more straightforward and productive.