Do you like setting up a trade with a defined profit and stop-loss point? If so, then bracket orders may be right up your wheelhouse. Currently, bracket orders, also known as a One Triggers a One Cancels Other (OTOCO) order or a One Cancels Other (OCO) order, may be placed using the tastyworks desktop platform when using the Table or Curve mode in the Trade tab. Please refer to the video above or continue to written instructions below to learn how to set up an OTOCO or OCO order in your 


Eligible Position Types for Bracket Orders

  • Stocks*/ETFs
  • Single-leg equity/ETF options
  • Futures (including Micros)^

Bracket orders are not available for any multi-leg option spread order.


*Bracket Orders on Hard-to-Borrow stocks

OTOCO orders are not available when shorting Hard-to-Borrow (HTB) stocks due to the potential of no share availability. However, OCO orders may be used on an already established short stock position that is HTB. To learn how to determine if a stock is HTB on the desktop platform, please click here.


^Bracket Orders on Futures

When using an OCO or OTOCO for any futures position, please be aware that stop market orders are subject to CME's Market Order with Protection handling. To learn more about this and how it may affect your stop market order, please click here.


Sections



What is a bracket order (OCO & OTOCO)

An order type that sets pre-defined profit and stop-loss points

A bracket order is an order type that allows you to place a defined profit and stop-loss point to a new or existing position. At tastyworks, we offer two bracket order types: OTOCO orders and OCO orders. Bracket orders may be conducive for traders looking to set pre-defined profit or loss points without the need to monitor your platform continuously.


OTOCO: One Triggers a One Cancels Other order

OTOCO orders are used when creating a bracket on a new Position. OTOCO's allow you to open a trade and simultaneously set up a profit and stop-loss targets.


OCO: One Cancels Other order

OCO orders are used when creating a bracket on an existing Position. OCO's allow you to set up and route a profit and stop-loss target simultaneously.



How to set up a Bracket Order for a New Position (OTOCO orders)

Line up an order then click Bracket in the order ticket

First, line up your opening order (stock/ETF, single-leg option, or futures) by using the Table or Curve Mode in the trade tab. After lining up an eligible position in the order ticket, click the Bracket button, located in the bottom left-hand corner of the order ticket.

  1. A Bracket Order window will appear and display three boxes. Below is an example of an OTOCO order for a long stock position. Inversely, when setting up an OTOCO on a short position, the Close at Profit (green) box will display at the bottom of the Bracket Order window, and the Stop Loss (red) box will display on top.
    1. Grey Box: Order Entry Starting Point
    2. Green Box: Close at Profit
    3. Red Box: Stop Loss
  2. Order Entry Point (Grey Box): Enter your order quantity by double-clicking the quantity field, limit price, and select a Time-In-Force (TIF). At this time, futures orders may only route as a Day Order. Only limit orders can be used as an entry point.
  3. Close at Profit (Green box): Enter a closing price (limit order). Your estimated profit amount and percentage will change based on your Close Limit Price. Then, select a TIF (Day Orders only available for futures).
  4. Stop-Loss (Red box): Enter a stop trigger, then select a stop type, either MKT for a Stop Market or LMT for a Stop Limit. Your trigger will dictate when your market order or limit order routes to the market. Your estimated loss amount and percentage also display, based on your Stop Type. Lastly, select a TIF (Day Orders only available for futures).
  5. Next, click Review and Send to view your order. You'll have an opportunity to review your order, as well as your profit and stop-loss prices. Additionally, you can select the account you wish to route the order in, as well as view the buying power effect. Below is an example of an order to buy 100 shares of SPY @ $311.50 with a close at profit order @ $315 and a stop-market to trigger @ $308.
  6. After sending, three orders will appear in your Activity tab or wherever you prefer to view your Working orders. Closing orders (stop-loss and profit target) will remain in a Queued state if the opening order does not fill, as illustrated below:



How to set up a Bracket Order on an Open Position (OCO)

Locate the Position, right-click, and select Bracket

You can quickly line up an OCO order on an existing open position (stock/ETF, single-leg option, or futures) by locating the position, right-clicking, and choosing Bracket

  1. Open the Positions tab and locate the position. 
  2. Once located, right-click, and select Bracket, as illustrated below:
  3. A Bracket Order window will appear and display three boxes. Below is an example of an OCO order for a long stock position. Inversely, when setting up an OCO for a short position, the Close at Profit (green) box will display at the bottom of the Bracket Order window, and the Stop Loss (red) box will display on top.
    1. Grey Box: Position Starting Point
    2. Green Box: Close at Profit
    3. Red Box: Stop-Loss
  4. Position Starting Point (Grey Box): Since the position is already open, there is nothing to enter or change.
  5. Close at Profit (Green box): By default, the quantity will match your current open position quantity. However, you may change your quantity by double-clicking and entering a number. Next, enter a closing price (limit order). You may also enter a profit target based on a profit percentage. Then, select a TIF (Day Orders only available for futures).
  6. Stop Loss Order (Red box): The quantity displayed will match the amount entered in the Close at Profit, and vice-versa. Next, enter a stop trigger price, then select a Stop Type–either MKT for a Stop Market or LMT for a Stop Limit. Your trigger will dictate when your market order or limit order routes to the market. If using a Stop-Limit order, then enter a closing price. You may also enter a stop-loss target based on a loss percentage. Your percentage profit for a stop-market will adjust the Stop Trigger Price. Or, if using a Stop-limit, the Stop Loss Percent will adjust the Limit Order price. Lastly, select a TIF (Day Orders only available for futures).
  7. Next, click Review and Send to view your order. You'll have an opportunity to review your order, as well as your profit and stop-loss prices. Additionally, you can select the account you wish to route the order in, as well as the buying power effect. Below is an example of an order to sell 100 shares of GRPN @ $2.88 with a close at profit order @ $4.00 and a stop-market to trigger @ $2.50, as illustrated below.
  8. After sending, two orders will appear in your Activity tab or wherever you prefer to view your working orders. Closing orders (profit target and stop-loss) will remain in a Working status until the order is filled, expired, or canceled.


How to Replace a Bracket Order

Locate the order, right-click, and select Replace Order

Replacing a bracket order is similar to any other Working order. To replace or edit a Bracket Order, start by locating the working order. You can view your working orders in the Activity tab, Positions tab (with the working filter enabled), and the Orders window of the right-hand sidebar. Whether you're replacing an OTOCO or an OCO order, all you need to do is right-click on the working order and select Replace. After clicking replace, you may adjust the price and re-send the order to replace it.


How to Cancel a Bracket Order

You may cancel a portion or the entire bracket order

When canceling a bracket order, you have the choice of canceling the profit target order, the stop-loss order, or the whole bracket (complex) order. 

  • Cancel Order (orange box) will only cancel the selected portion of the bracket order.
  • Cancel Complex Order (yellow box) will cancel the entire bracket order.



Where can I view my entire bracket order?

Locate the order, right-click, and select View Complex Order

You can view all components of your bracket order by visiting the Activity tab, or wherever you prefer to see your working orders. However, if you have multiple bracket orders working and made an adjustment to any portion of the bracket order, then you may notice that the bracket order may no longer display together. The Activity tab sorts orders by the time it was initially submitted. However, you can quickly view all working orders associated to a bracket order by locating any portion of the bracket order, right-clicking, and select View Complex Order, as illustrated below:
After clicking View Complex Order, you'll see each order associated with your Bracket Order. There, you can replace/edit or cancel any portion of your bracket order, or cancel the entire Bracket Order by right-clicking on any portion.


Web Browser Platform

Currently, the web browser platform will display each working part of the bracket order as an individual order. The ability to view the entire bracket order as a group, similar to the desktop and mobile platform, is coming soon.


Mobile Platform

You can view any working bracket order in the iOS application in a self-contained window by navigating to the Activity tab, locating the order, tap any portion, and select View Complex Order. Illustrated instructions are below:


1) Navigate to the Activity tab.

2) Tap any portion of your bracket order, then tap View
 Complex.
3) After tapping View Complex, you will see all portions of your working bracket order.

4) Tap any portion of your bracket order to make an adjustment or to cancel. To cancel the entire bracket order, tap Cancel Complex.