Bracketed sell order

A type of limit order performed on the short selling side. This is a way to protect short sellers from getting screwed further from a rising stock price. To save their wallets, a buy order is placed ahead of their short entry point and another buy order is placed below the market price to cover their behinds.

Example:

Sell short: 100 shares at $5 a share.
Buy: 100 shares at $4 a share.(Guaranteed profit even if the trader is in the toilet)
Buy: 100 shares at $6 a share.(Loss protection, so the short trader wont cover the shares at a higher price if it kept going up)

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