Bracket orders are compound orders that are linked together to provide advanced trading capability with a single click. Bracket orders consist of a profit target and a stop loss order. When enabled, a bracket order is immediately submitted upon initiation of a position.
One of the realized benefits is much faster placement of orders and assurance don't forget to place a profit or stop loss order. Risk is also reduced because immediately upon filling one, the other side is cancelled. This reduces market exposure.
All orders reside server side which is very beneficial because of speed and reliability.
To Create A Bracket Order
- Open ATOM Settings by clicking your initials in the top right corner then click Settings. Click the ATOM tab.
- Turn "ON" at least 1 leg.
- Turn "ON" Profit Order and Stop Order
- Specify the parameters of each order. All settings are immediately saved. Values are in ticks, expect for Max Qty field.
- Go back to a DOM or Trade Ticket and choose the strategy from the ATOM dropdown. New orders that are initiated will use the new ATOM bracket settings.
A leg is an order or set of orders that are linked. If both the Profit Order and Stop Order or turned "on" then they are linked. If only one is "on" then the order works alone and is only linked to the order that initiated it. Here are 3 scenarios.
1) Automated Profit Target - Upon initiating a position, a profit target order is automatically submitted x ticks from entry. The Profit field specifies the number of ticks the profit order is placed from entry.
2) Automated Stop Loss - Upon initiating a position, a stop loss order is automatically submitted x ticks from entry. The Stop field specifies the number of ticks the stop loss order is placed from entry.
3) Bracket Order - Upon initiating a position, a profit target order AND stop loss order are automatically submitted a specified number ticks from entry. The profit target and stop loss are link as an OCO (one cancels other). If the profit order gets filled, the stop loss is immediately and automatically cancelled. The opposite is true if the stop loss order is filled first.
This is the order quantity for each leg. You might choose to exit the entire position in the first leg, or turn on multiple legs to exit the position a little bit at a time. Values can be typed or use the + or - buttons.
When On this submits a limit order x ticks from entry and serves as the profit target. When Off no profit target order is submitted.
This is where you specify how many ticks away from entry the profit target is placed. Ex. Setting a value of 10 will automatically submit an exit order 10 ticks away from entry for the quantity specified for this leg. This strategy does not submit a stop loss order, only profit target.
Strategy Tip - See how to build a profit order strategy
When On this submits a stop loss order x ticks from entry using the order type specified in the dropdown. There are 4 types, each described below.
STP - STOP - This is a standard stop order. It submits a stop loss order the specified number of ticks from entry price. Ex. A setting of 10 submits a stop market order 10 ticks from the entry price.
TSTP - Trailing Stop - This stop strategy submits a stop loss order the number of ticks specified and then continually adjust the stop loss order as the position moves in your favor using a proprietary algorithm to trail the market. The stop loss order only moves if prices moves in a favorable direction. Strategy Tip - See how to build a stop order strategy
DSTP - DOM Triggered Stop - DOM triggered stop orders behave like a stop order but do not trigger until the bid or ask quantity is less than or equal to the Inside Market Threshold which you set. So there are 2 parameters to set for DTSP. The distance in ticks the stop order gets place and the inside market DOM threshold. Ex. The Stop amount is 10 and the amount in parenthesis is 100. This would submit the DSTP order 10 ticks from entry AND then require the inside market (best bid or best ask) become a value less than 100. DOM triggered stops are fully synthetic and supported on all Exchanges.
DTSTP - DOM Triggered Trailing Stop - The same in all respects to DSTP orders but these also have a trailing component which behaves exactly like the TSTP order.
Represents the number of ticks the stop loss order is entered from entry and uses the stop strategy chosen in the Stop Order drop down. Ex. A value of 8 will submit a stop loss order 8 ticks from the entry price.
Time in Force - this controls how long the order continues to work in the market before it is cancelled.
Day - only valid for the current session. If not filled the order is cancelled.
GTC - Good-til-cancelled. The order continues to work in the market beyond the current session.