A Bracket Order is a special type of order through which you can take an intra-day position and take advantage of extra exposure while being protected through a stop loss order and a profit booking order.
This can be placed by three orders simultaneously,
- The first is the limit order for the buying or selling that you are looking for.
- The second order is a profit booking order that you set as the profit that meets your expectations.
- The third order is a stop loss order. A stop loss order helps you exit a position as soon as the stock hits that bottom of loss. This order is a reflection of the loss that you are willing to take with the stock in concern.
All these orders are placed simultaneously. As soon as any one of the profit limit or stop loss is hit, the other is cancelled. Profit or stop loss order is not going to be placed unless the limit order is executed. It is also important to note that a bracket order is an intraday order and needs to be squared off before intraday closing of 3:15pm.
Benefits of Bracket Order
- Bracket orders make sure that your profit or loss lies between two limits of an acceptable profit and bearable loss that you set.
- Because the maximum loss is limited, the margin requirements are really low (between 2% and 2.5%) compared to the 10-11% margin requirement in other risk based trades.
Click here to know the intraday margin required for Bracket Orders.
For know more information about bracket order and trailing stoploss, you may refer to TradeSmart blog.
Note: When placing a bracket order if the order gets filled in multiple executions (this happens when there are not enough counter orders available in market matching your order quantities and prices), each of the execution will be considered as a separate order and you will be charged brokerage & taxes separately for each partial fill. The same applies for auto-square off charges too if squared off by our RMS team.
Can i modify the stop loss order to a higer amont.
For eg.. i have put an order my buy price is 350
Bracket order sell price is 500 stop loss is 300
Now the price move to 450, can i modify the sl to 400?
Yes you can modify.
Can we place Bracket order with trailing SL in Bank nifty options from mobile app ?
Yes, you can place.
Can i place bracket order for bank nifty option buying
Hi Atul,
Yes, you can place bracket order for bank nifty option buying. Kindly note, there is no exposure available for options buying. You are required to pay full premium for options buying. You may refer our knowledge base article for intraday exposure in different segment.
What is closing time for BO and CO
Hi Sharad,
BO/CO are intraday products hence the square off timing for these products is 3:10 pm.
For future and option sell in BO/CO segment has changed with 234.96X levarage permanently or for some days?
Hello Jagannath,
Leverage might differ depend on the market volatility. Kindly refer our Margin Calculator for CO/BO leverage. You may also refer our Knowledge base article on intraday exposures.
in there any facility of margin for option sell in BO ? if yes than what is margin requirement for sell option in BO/CO?
Hello Amar,
You would get upto 7 times in BO/CO for option sell for derivatives. In case you want to trade in NSE cash, you would get upto 30 time in CO/BO for intraday. Kindly refer our margin calculator.
Do you provide trailing stoploss order facility with Bracket Order?
Hello Ahamed,
Yes, we provide trailing stop loss order facility along with bracket order. Kindly refer our details blog on Bracket order & Trailing stop loss.
how can i use BO and CO in sine APP
Hi Vibhor,
Kindly refer below video on how to place BO & CO from Sine mobile app.
1. Bracket order
2. Cover order
For more videos of Sine app Click here.
Dear Sir,
Why can’t you make a single order entry form with all necessary details needed for a Cover Order / Bracket Order (instead of clumsy / laborious procedure of the trader place one buy cover order two sell cover order three stop loss order)? For example, see the trading application of ICICIDirect.com which is
user-friendly and easy to place CO/BO (in their Margin Plus product).
YTLS23
Hello Sasi,
Cover and Bracket orders are placed through single order entry itself. It would be helpful if you could share the procedure that other broker is following.
How can I know the current trigger price of stop loss order of Bracket order using Trailing Stop loss for NEST.
Hi Pawan,
Hope our previous post addressed your query. Please let us know in case the query is not resolved.
If last trading price(LTP) moving in my direction ,then how can I know the current trigger price of Bracket Order using Trailing Stop loss, ( if I am using NEST)
Hi Pawan,
You can see your current trigger price in pending orders. You can also double click on pending order to know the history of order placed.
How to fill bracket order in now mobile app
Hello Kapil,
Currently, the bracket order feature is available under NEST trader terminal. You need to email us at [email protected] for activation of NEST trader terminal.
Hi,
But I guess Sharekhan is providing SL buying order with BO! Then I think it is doable. Why do not you fulfill all the requirements.
Thanks
Can’t comment on another broker. However, we will check if something could be done for this.
Yes, I got it, its just that it would be more convinient, thats all……
We understand your concern and would be happy to provide you in case the bracket order structure is changed. However, you can still place manual SL order for buy and sell separately for which you may have to maintain respective margin in your account.
Why is the first buying/selling order limit? The most useful order is SL. Limit order may not give the fill and Market order gives slippage. So why so much inconvience with bracket orders?
Hello Mahesh,
As we had addressed your query through chat, we would like to inform you that earlier, there was only a market option in first leg to place. Recently, limit order has been introduced. Both first leg and second leg could not be a stop loss as per bracket order structure.