I recently received the following question about trading software and order types:

Why do you use Bracket Trader vs stops and limits?

Before I answer the question, I want to clarify that I do not actually use Bracket Trader to make and manage my trades because I have written my own trading software instead. Also, Bracket Trader is just one example of the available trading software (or order entry software), but it is a good choice for beginning day traders because it is low cost, and offers the features that day traders usually require.

In answer to the question, Bracket Trader and stops and limits are completely different things. Bracket Trader is trading software that places and manages the separate orders that make up a complete trade. Stops and limits are two of the types of orders that can be used. For example, a trader would use Bracket Trader to place both a limit order to enter a trade, and a stop market order as a stop loss (or crash stop).

Further details about the various types of orders that can be used in day trading are available in the order types article of the day trading basics section of the day trading site.