In this article:
Overview
A bracket order lets you attach a take-profit, a stop-loss, or both to a new buy order for a stock or ETF. Once your buy order fully fills, we watch the price for you. When your take-profit or stop-loss price is reached, we sell your shares and, if you set both, automatically cancel the other one. You don't need to watch the market or place a follow-up order.
What to expect
- Bracket orders work on new market and limit buy orders for whole shares of US and Canadian stocks and ETFs, on web and in the Wealthsimple app. They work in non-registered, margin, TFSA, RRSP, and joint accounts. Fractional orders aren't eligible.
- You can add a bracket when you place a new buy order. You can't add one to shares you already own yet.
- Your take-profit and stop-loss only become active once your buy order fully fills. If your buy order expires before it fully fills, your take-profit and stop-loss are cancelled.
- While your take-profit and stop-loss are open, the shares they cover are set aside for them.
- Your take-profit and stop-loss only trade during regular market hours. If you place a limit buy on a US stock or ETF in the 24-hour market, your buy can fill outside market hours, but your take-profit and stop-loss wait for market hours.
- If your take-profit or stop-loss doesn't trigger, it expires 90 days after you place your order. You keep your shares.
- You can't change your buy order, take-profit, or stop-loss after you place them. To set new levels, cancel the take-profit, the stop-loss, or both, then place a new order.
- You can have up to ten pending orders for each stock or ETF. Your take-profit and stop-loss count toward that limit.
- Your buy order, take-profit, and stop-loss show as separate items in the Activity tab, labelled as part of a bracket. The take-profit and stop-loss show as Contingent until one triggers.
Understanding the take-profit
A take-profit lets you set the price you want to sell your shares at to lock in a gain. If the price rises to your take-profit price, we sell your shares and, if you also set a stop-loss, cancel it.
Example: You buy ten shares of XYZ at $175 and set a take-profit at $195 and a stop-loss at $165.
- The price rises to $195 during market hours.
- Your shares sell at a gain, and your stop-loss is cancelled.
Understanding the stop-loss
A stop-loss lets you set the price you want to sell your shares at to limit a loss. If the price falls to your stop-loss price, we sell your shares and, if you also set a take-profit, cancel it.
A stop-loss doesn't guarantee that your shares sell at your stop-loss price. If the price moves quickly, or opens much lower than your stop-loss price, your shares may sell for less, or may take longer to sell. If the price falls below your stop-loss outside market hours, your stop-loss triggers when the market opens.
Example: You buy ten shares of XYZ at $175 and set a take-profit at $195 and a stop-loss at $165.
- The price falls to $165 during market hours.
- Your shares sell to limit your loss, and your take-profit is cancelled.
Place a bracket order
You can add a take-profit, a stop-loss, or both when you place a market or limit buy for a stock or ETF.
- Log in to the Wealthsimple app
- Go to the page for the stock or ETF and tap Buy
- Choose Market or Limit, then enter the number of shares (and the limit price for a limit order)
- Tap the Order settings icon next to the order type
- Tap Bracket order, then enter a Take profit price, a Stop loss price, or both
- Tap Save
- Review your order and submit it
- Log in to your Wealthsimple profile
- Go to the page for the stock or ETF, select Buy, and choose an order type, such as Limit buy
- Enter the limit price (for a limit order) and the number of Shares, then select Next
- Turn on Bracket order
- Enter a Take profit price, a Stop loss price, or both. You can enter each one as a dollar price ($) or a percentage (%)
- Select Review
- Select Submit order
How this compares to a stop-limit or stop-market order
A stop-limit order and a stop-market order are standalone orders that wait for a stop price you set, and you can place them on shares you already own. A bracket order works differently: you attach the take-profit and stop-loss when you place a new buy order, and the two work together. When one executes, the other is cancelled automatically.
The stop-loss in a bracket order is part of that bracket and can't be placed on its own. To set a standalone order to sell shares you already own, see Understanding stop-limit orders and Understanding stop-market orders.
Frequently asked questions
Do I need to set both a take-profit and a stop-loss?
No. You can set just one, or both.
Which orders and accounts can I use a bracket order with?
You can add a bracket to market and limit buy orders for whole shares of US and Canadian stocks and ETFs, on web and in the Wealthsimple app. They work in non-registered, margin, TFSA, RRSP, and joint accounts. Fractional orders aren't eligible.
Can I add a bracket to a stock or ETF I already own?
Not yet. You can only add a bracket when you place a new buy order.
Can I change my bracket after I place it?
You can't change your buy order, take-profit, or stop-loss after you place them. You can cancel the take-profit or the stop-loss on its own, or cancel both:
- Log in to the Wealthsimple app
- Tap the Activity tab at the bottom of your screen
- Select the buy order, take-profit, or stop-loss you want to cancel
- Tap Cancel order
- Log in to your Wealthsimple profile
- Select the Activity tab at the top-left of the screen
- Select the buy order, take-profit, or stop-loss you want to cancel
- Select Cancel order
To set new levels, cancel and place a new order. If your buy order hasn't filled yet, cancelling it also cancels the take-profit and stop-loss.
What happens if my buy order only partly fills?
Your take-profit and stop-loss only become active once your buy order fully fills. If your buy order expires before it fully fills, your take-profit and stop-loss are cancelled. You keep any shares that were bought.
When do my take-profit and stop-loss trigger?
They're monitored automatically once your buy order fully fills, and only trigger during regular market hours, even if your buy order was placed in the 24-hour market.
What happens if my take-profit or stop-loss never triggers?
It expires 90 days after you place your order. You still hold your shares, and you can place a new order to set up another exit.
Will my stop-loss always sell at the price I set?
Not always. If the price moves quickly or opens much lower than your stop-loss price, your shares may sell for less, or may take longer to sell.
Why was my bracket order rejected?
Common reasons are not having enough buying power or reaching the limit of ten pending orders for that stock or ETF. If neither applies, contact our support team and we'll take a look.
Why do I see separate orders in my Activity tab?
Your buy order, take-profit, and stop-loss each appear as their own item in the Activity tab, labelled as part of a bracket. The take-profit and stop-loss show as Contingent until one triggers. When one executes, the other is cancelled automatically.
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