What are Bracket Orders and how to use them?

A Bracket Order is an advanced trading tool that helps you manage both profits and risks. It automatically places a take-profit and a stop-loss order around your position, forming a “bracket.”

When either the take-profit or stop-loss is triggered, the other order is automatically cancelled — making it a type of OCO (One-Cancels-the-Other) order.

Key Features of Bracket Orders

•  Can be applied to existing positions or set while placing a new order.
  
  

•  Always closes the full position — and adjusts automatically if your position size changes.
  
  

•  Triggered using Mark Price; once hit, a market order is placed.
  
  

•  Traders can:
  
  

  • Set take-profit and stop-loss levels manually
    
    

  • Use ROE-based inputs (e.g. close position at +50% return)
    
    

  • Add a trailing stop-loss to lock in gains as the trade moves in their favor
    
    

 Example

Let’s say you’re long on BTC:

• You want to take profit at +50% ROE
  
  

• You want to cut losses at -25% ROE
  
  

Delta Exchange lets you pick these ROE levels, calculates the price and expected PnL, and sets your bracket order accordingly.

How to Place a Bracket Order

• Go to the Position Tab
  
  

• Click “Add Bracket Order”
  
  

• Choose either price levels or ROE-based triggers
  
  

• Set your take-profit, stop-loss, or both
  
  

• (Optional) Add a trailing stop-loss
  
  
  

  

 Why Use Bracket Orders?

• Automates exit strategies
  
  

• Helps secure profits and limit losses
  
  

• Reduces manual intervention
  
  

• Essential for disciplined risk management