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# Bracket Orders and OCO: Set Your Stop and Target Together
- URL: https://www.flltlt.com/blog/bracket-orders-oco/
- Published: 2026-10-27T15:26:09.000Z
- Updated: 2026-10-27T17:39:39.000Z
- Description: How bracket orders and OCO work, why they keep your plan intact and the mistakes to avoid, like orphan orders.
- Author: Fulltilt
- Tags: Platforms & Tools, Trading Glossary

**The short answer:** A bracket order is an entry order with a stop loss and a profit target attached. The stop and target are linked as OCO, "one cancels the other": when one fills, the platform cancels the other automatically. Brackets let you decide your exit before you enter, which takes the in-the-moment decision away and keeps a forgotten order from opening a new position by accident.

## Key takeaways

- Bracket = entry + stop + target, placed together.
- OCO means when the stop or target fills, the other is cancelled.
- It sets your risk and reward before emotions get involved.
- Most futures platforms support brackets, often as saved templates.
- Always confirm the bracket attached after your entry fills.

## How does a bracket order work?

![A bracket order on a chart: entry line with a target above and a stop below. When the target fills, the stop is cancelled automatically.](https://storage.ghost.io/c/a0/84/a0847890-aa24-4d5e-b6dd-8a7b42022bb3/content/images/2026/10/bracket-chart.png)

1. **You enter** with a market or [limit order](https://www.flltlt.com/blog/market-vs-limit-orders/).
2. **Two exit orders attach:** a [stop](https://www.flltlt.com/blog/stop-loss-orders/) below (for a long) and a limit target above.
3. **Price hits one of them.** That order fills and closes the trade.
4. **The other cancels.** No leftover order sitting in the market.

## Why use bracket orders?

- **Risk is set before entry.** You know exactly what the trade can lose.
- **Fewer emotional decisions.** No moving the stop, no grabbing profit early out of fear. See [trading on tilt](https://www.flltlt.com/blog/trading-on-tilt/).
- **Protection if something breaks.** If your internet drops, the stop is already working at the broker or platform.
- **Consistency.** A saved template means the same stop and target distance every time.

## What can go wrong?

- **The bracket didn't attach.** Some platforms only attach a bracket when using a template or a specific order button. Check after every entry.
- **Orphan orders.** If you close a trade manually without the platform cancelling the exits, a leftover order can open a new position. Use flatten or "cancel all" when you exit by hand.
- **Fixed brackets on every chart.** A 10-point stop on a quiet day and a wild day aren't the same. Adjust to the chart, then [size to fit](https://www.flltlt.com/blog/position-sizing-futures/).

> **From the desk** Indy trades MNQ and records results in points on [Day Trader Income](https://www.daytraderincome.com/). Points-based brackets make it simple: the stop and target are set in points from the chart, and the platform handles the rest.

## The bottom line

A bracket order is the easiest way to make a plan stick: entry, stop and target, set together, with the exit you don't need cancelled automatically. Practice placing and checking them on a simulator until it's automatic.

## FAQ

### What is a bracket order?

A bracket order is an entry order with a stop loss and a profit target attached. When one exit fills, the other is cancelled.

### What does OCO mean?

OCO stands for one cancels the other. When one of two linked orders fills, the platform automatically cancels the other.

### Why should day traders use bracket orders?

They set risk and reward before entry, reduce emotional decisions and keep a stop working even if your connection drops.

### What is an orphan order?

A leftover stop or target that was not cancelled after a trade closed. It can accidentally open a new position if price reaches it.