Language

Multilingual content from IBKR

Close Navigation
Learn more about IBKR accounts

Bracket Orders for TWS Mosaic

Lesson 5 of 21
Duration 4:30
Level Beginner
Close Navigation

Bracket orders are designed to help limit your loss and lock in a profit by “bracketing” an order with two opposite-side orders.

Study Notes:

In this lesson, we’ll walk you through how to set up a Bracket order using TWS Mosaic.

  • We’ll define the objective of the Bracket order type
  • Show you how to create a Bracket order in TWS Mosaic
  • Show you where you can locate Bracket orders within the Activity panel

Bracket order

Bracket orders are designed to help limit your loss and lock in a profit by “bracketing” an order with two opposite-side orders. These two opposing child orders become active when the parent order executes, but only one of them can be triggered, and if it does, the other is immediately cancelled.

Creating a Bracket order in TWS Mosaic

When you create a bracket order to buy, for example, this chart displays these resulting three orders:

A parent BUY order is bracketed by a high-side limit order to sell – a profit-taker – and a low-side stop order aiming to sell in order to limit open losses.

Meanwhile, this other chart shows a parent SELL order, which is bracketed by a high-side stop order to buy hoping to limit open losses, and a low side limit order to buy – a profit-taker.

Using TWS Mosaic, let’s set up an example using a BUY order.

In this illustration, let’s assume you want to pay a specific price to buy shares in a company. Let’s say it’s the tech sector giant Amazon.

To limit any losses, this order should include a Stop Loss to sell the position at a specific price below the entry price, as well as a Profit Taking order should the share price rise to a predetermined level above the entry price.

To create this, first set up your order to buy your shares using the Order Entry panel.  Simply select the ticker, in this case AMZN for Amazon, and click the Buy button.

Next, enter the number of shares you want to purchase in the Quantity field, let’s say 300, and then from the Order Type dropdown menu select LMT.

Next, set the limit price at which you are prepared to buy shares, and then change the Time-in-Force field as needed.

We’ll now want turn this into a Bracket order, and we can do this by first clicking on the Advanced button, which will display additional order entry options.

Selecting Attach will reveal the Bracket functionality, and by checking the Bracket box, the Profit Taker and Stop Loss fields will automatically become checked-off with the Order Entry panel now displaying the add-on +Bracket.

You’ll now want to input your desired price for the Profit Taker Limit order, as well as the price for your Stop Limit sell order and the time-in-force for each entry as necessary.

To complete your order, review your details and click Submit when ready.

*Remember untriggered GTC orders are automatically cancelled by the system at the end of the calendar quarter following the one in which they were originally entered.

You’ll now see the details of your order in the Order Confirmation window, which shows the order type and each of the three related orders. If all of these details reflect what you intended, click Transmit to send your order to the exchange.

Join The Conversation

If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

10 thoughts on “Bracket Orders for TWS Mosaic”

  • CLAUDIO CATALANI

    If I already own an option combo, can I set a bracket order and attach a profit taker and stop loss?

    • Interactive Brokers

      Hello Claudio, thank you for your question. In TWS (Mosaic), you can attach a Bracket order to a primary order by expanding the Advanced panel and selecting Attach Stop Loss/Profit Tacker/Bracket. Make a tick next to Bracket (Profit Taker + Stop Loss), enter the order parameters and submit. Please note that the primary order does not necessarily need to be a Limit order. The primary order type can be modified before submitting the bracket order. Please review this FAQ article for more information: https://www.ibkr.com/faq?id=35807587 We hope this helps!

  • Dante Vandewalle

    Dear,

    Is it possible to see the % of the potential profit/loss on the line of my buy lmt and buy stp for example?

    • Interactive Brokers

      Hello Dante, we want to respond quickly to your comment, but we’re not completely clear about the issue you’re raising. If you are willing to share more specific detail, just reply to this comment and we will get back to you as soon as we can. Thank you for reaching out.

  • German

    Hola, buenos dias.

    Es posible que la orden take profit no sea sobre el total de mi posicion? Es decir, si puedo elegir el porcentaje de mi posicion a ejecutar con la orden take profit.

    • Interactive Brokers

      Hello, thank you for reaching out. The Profit Taker order is designed to close out a profitable position. For a BUY parent order, the profit taker is a high-side sell order that uses the same order quantity as the parent, and a price offset by 1.00 (by default). For a SELL parent order, it’s a low-side buy order. For example, if you create an order to buy 300 IBM at 211.82 and attach a profit taker, the order will be to sell 300 IBM at 212.82. The order will be created but will not be submitted until the parent order fills. You can reset the limit price of the profit taker by tapping the Profit Taker limit price field and using the spinners to set the new price. We hope this helps!

  • Jean-Pierre Sablier

    Hello,

    I would like to clarify whether purchase BRACKET ORDERS on TWS can execute a STOP LOSS sale order outside of Regular Trading Hours (RTH). Is it possible to set up a STOP LOSS order that executes during extended trading hours, or are there specific restrictions regarding this?

    Could you also advise on best practices or alternatives available for risk management outside of RTH?

    Thank you in advance for your assistance.

    Best regards,
    Jean-Pierre Sablier

    • Interactive Brokers

      Hello, thank you for reaching out. You can set up stop orders on individual positions on your account, but they will only trigger during regular trading hours for that product. For products that support trading outside of regular hours, you can enable the Extended Hours feature just below the Time in Force section of the order ticket. Extended Hours is only available for Limit orders.

      Please view this User Guide for more information on our Order Types in TWS:
      https://www.ibkrguides.com/traderworkstation/order-types.htm?Highlight=extended%20hours

      We hope this helps!

  • Anonymous

    dear IB Customer Support,

    Can you set up a bracket order where, for instance, you buy 300 shares, wish to sell 200 upon reaching a first target price and leaving the next 100 shares to reach target price #2, all the while employing the same buy price and atop loss limits.

    Thanks,

    Asher

    • Interactive Brokers

      Thank you for reaching out and we apologize for the delayed response. Please review our available Order Types on our webpage: https://spr.ly/IBKR_OrdersCampus

Leave a Reply

Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.

Disclosure: Order Types / TWS

The order types available through Interactive Brokers LLC's Trader Workstation are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.