Bracket order is a type of order where you can enter a new position along with target price and stop loss order. It is one of the kind of advanced orders which involves auto cancellation and trailing stop loss.
Types of orders involved in bracket order
Features of Bracket Order
BO orders are Intraday orders
• Trader can put the order and rest is assured, either the target will be achieved or the stop loss will get executed
• Trader need not monitor the market to modify the prices frequently
Example for Bracket Order
Lets take a bracket order example:
Client A wish to buy Wipro at Rs 380 and wish to book profit at 390. However he is afraid, that the share price may go down if it crosses the limit of 375. In normal scenario, he need to place three orders; ie
Buy order at Rs 380
Sell Order at Rs 390
Stop Loss Order at 375
In this case, the client need to monitor the trades and he need to cancel the stop loss order, if the share price move favourable to him/her. If the share price goes down, he need to cancel his sell order. But if the same orders are placed through BO, then:
In a single order window, he can place buy order, sell order and a stop loss order. The biggest advantage here is, client need not monitor and cancel the 3rd order. For the same case, the client need to place BO Order as : In the same order window: Buy Wipro at 380, Max profit difference is 10 and Minimum Profit difference is 5. Thus by placing BO order client can save time and hassles of placing 3 different orders.
Another feature of BO Order, you can select trailing stop loss while placing the order. We will explain with an example:
Suppose in the above order, client select trailing stop loss, whenever the price of Wipro goes up by Rs 1, the price stop loss also goes up by Rs 1. However the stop loss order will remain unchanged, if the share price is going down.
Margin for Bracket
• Intraday Margins
• Auto Square off at 3.10 PM
• At present available only to Online clients
• Nifty 50 stocks are only eligible.
• Customers will have to accept the Terms and Conditions
for availing this facility
• No product Conversion
• Product shall be available for selected shares
OCO (One Cancels Other)
An OCO – One Cancels Other orders are a pair of orders wherein the execution of one order automatically cancels the other order. It combines a limit order along with stop loss order Client can place OCO order only from Portfolio Client can place sell order, along with he/can place
minimum profit and maximum profit order.
Here he will have two benefits:
He/she can place a price to monitor at price, and the order will be active only if the price reaches the monitor at price He/she can select Cover at 3, thereby the sell order will be covered at 3, if the sell order is triggered.
Features of OCO Order
• OCO orders are placed against your positions.
• Client can put the order and rest is assured, either the target will be achieved or the stop loss will get executed.
• Client need not to monitor the market to modify the prices frequently.
• If the client selects Cover at 3 option, the order will get executed if both the targets are not achieved, then Cover at 3 will square off the position on the trading day.
•Target and stop loss will be monitored by the system only if the client has selected Monitor at and the order will be triggered only if it reaches the monitor at price.