What are Bracket Orders ? How do they work ?

Published Oct 17, 2024

Bracket Order (BO)

A bracket order allows you to enter a new position along with a target and a stop-loss order simultaneously. Once the main order is executed, the system will automatically place the other two orders (Stop Loss and Target). Similarly, as soon as one of the pending orders (Stop Loss or Target) is executed, the other order will be automatically canceled.

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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 choose Bracket order entry.

 

Flow Process

1. Place a limit order, to enter a position.

 

EQ Segment

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.

 

EQ Segment

 

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.

 

For EQ Segment

 

4. Click on Submit.

5. As soon as the order is completed at your given limit price, simultaneous Target and SL order will be placed, which can be seen in 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 the Market rate.

Important things to remember:
  • For Required Margins details in Futures, please refer to this Link
  • For Margins Details in NSE Cash, please refer to this Link
  • For Strikes available details in option buying & selling, please refer to this Link
  • For Required Margins details in MCX Futures, please refer to Link


Notes:

  • Bracket Orders are for intraday trades only. Positions taken through Bracket order cannot be converted and cannot be carried forward. All positions taken through Bracket Orders might be squared off by RMS Team at 03.20 PM (Equity),4:50 PM Currency, and 11:00 PM /11:30 PM (MCX), if not done from the client’s end.
  • Bracket orders are available in NSE Cash (Up to 5 Times limits), No intraday margin in FNO, CDS & MCX.
  • ATP – Avg. Traded Price: If you select ATP while placing a Target / 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 a Target / 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 / SL Order, select Absolute and enter Target and SL in points. For e.g.: If Nifty 24000 Option Strike Price is bought at 500 and you wish to place your target @ 550 and SL @ 480, then in the Square off sell column enter 50, and in the Stop-loss sell column enter 20.
  • Ticks: While placing Target / SL Order, select Ticks, and enter Target and SL in ticks. 1 Tick = 0.05 points, so 20 Ticks is 1 point. For e.g. – If Nifty 24000 Option Strike Price is bought at 500 and you wish to place your target @ 520 and SL @ 490, then in the Square off sell column enter 400, and in the Stop-loss sell column enter 200.
  • Also, if the order entered is completed in multiple trades, then, SL and Target orders will be placed separately for each trade and will be billed per executed order.

Frequently Read Articles

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