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Bracketed Buy Order |
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Bracketed Buy Order An order to a broker consisting of three parts. The primary part is the order to buy a security at a certain price; this is attached to a limit order to sell the security at a price above the buy price and a stop order to sell it at a price below the buy price. For example, suppose one makes a bracketed buy order to buy at $200 per share. It may also include a limit order to sell at or above $225 and a stop order to sell at $175. A bracketed buy order tells the broker exactly what the client expects. It also allows the buyer to lock in profits and limit losses without the need to monitor the security and make follow-up orders. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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