What is a Bracket Order and how does it work?

Bracket Order

It is a type of order wherein you can enter a order along with a Target Order and a Stop Loss Order together. As soon as the main order is completed, the system will place the remaining two orders (SL and Target) automatically. Likewise, as soon as one of the pending orders from SL and Target will be completed, other orders will be cancelled automatically.

Placing a Bracket Order

  • Buy Order entry – Shift + F3
  • Sell Order entry – Shift + F4
  • Bracket order square off  – F3 (order book) >> Select pending order >> EXIT
  • Or right click on the scrip to select Bracket Order entry

What are Bracket Orders ? How do they work ?

Flow Process

1) Place a Limit Order to enter a position. Note that only Limit Orders can be placed through Bracket Orders.

What are Bracket Orders ? How do they work ?

2) Place a Target Price/Square-off Price by choosing LTP/ATP as per your reference in the first column and Absolute/Tick in the second column.

What are Bracket Orders ? How do they work ?

3) Place a Stop Loss Price by choosing LTP/ATP as per your preference in the third column and Absolute/Tick in the fourth column.

What are Bracket Orders ? How do they work ?

4. Click on Submit.

5. As soon as the order is completed at your given limit price, simultaneous Target Order and Stop Loss Order will be placed, which can be seen in the Order Book (F3).

6. To square-off Bracket Order position, open order book (F3) >> select any 1 pending order >> click on EXIT.

7. Square-off order will be completed at Market Rate.

Please note the below.

  • Bracket Orders are for intraday trades only. Positions taken through Bracket orders cannot be converted and carried forward. All positions taken through Bracket Orders will be squared off by the RMS team by 3:20 pm if not done from the client’s end.
  • ATP (Average Traded Price): If you select ATP while placing Target Order/SL Order, then your order will be placed as per the average rate of your completed order.
  • LTP (Last Traded Price): If you select LTP while placing Target Order/SL Order, then your order will be placed as per the last traded price of the scrip when your order is completed.
  • Absolute: While placing Target Order/SL Order, select Absolute and enter Target and SL in points. For instance, if Nifty is bought at 7400 and you wish to place your target at 7420 and SL at 7390, then you need to enter 20 in Sqoff column and 10 in Stoploss column.
  • Ticks: While placing Target Order/SL Order, select Ticks and enter Target and SL in ticks. 1 Tick = 0.05 points so 20 Ticks is 1 point. For example, if Nifty is bought at 7400 and you wish to place your target at 7420 and SL at 7390, then you need to enter 400 in Sqoff column and 200 in Stoploss column.
  • Bracket orders are available in NSE Futures (5 times limits), Options Buying (2 times limits) and Options Selling (5 times limits) as of now.
  • For availing 2 times margin in option buying, you need to enter SL Order at a price difference of 30% from your trade rate. And for availing 5 times margin in option selling, you need to enter SL Order within 1% range for Index options and within 2% range for Stock Options. (1% and 2% of the underlying price).
  • For Margins and SL range in NSE Futures please refer to the Margin Limits and for margins available in option buying and selling refer to the Options Margin Limits
  • If the order entered is executed in multiple trades, then SL and Target orders will be placed separately for each trade and will be billed per executed order.
  • Please note for clients in Rs.999/- unlimited monthly brokerage plan, Bracket Orders are chargeable at Rs.9/- per executed order over and above their current brokerage plan.

4 Comments

  1. D

    Reply
  2. Bo orders not activated in my account AP191

    Reply
  3. When will be alpha space mobile trading app available on aple iOS?

    Reply
    • Hi,
      We are working on it and soon it will be available for users.

      Reply

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