difference between bo and co

Hey traders
what is the difference between a bo and co .

I am putting it in terms of a transaction for a better understanding of the objective.

Stock A is trading at 500. You decide to buy 100 shares and keep a stop loss of 2%

With a Cover order you will enter the position with a stop loss trigger @ 490

Bracket order differs in two ways, 1) There has to be a profit target.
2) The SL and Profit target values should be entered in absolute values.

Therefore with a bracket order you will enter the position with a profit target of 20 (i.e 4% upside) and a stop loss trigger of 10 (i.e 2%).

You also have the option of Trailing your stop loss which is another important aspect of the bracket order but it is optional.

Added benefit with either of these order types is the increased leverage.

More information on the aforementioned order types.

bo has target and stop-loss. co has only stop loss