Table of contents
1) What Is Bracket Order?
A Bracket order is the order type which newly introduced in indian stock trading portals. Bracket order give option to user to enter a new position with Target price / EXIT & stoploss order.If main order is executed the system will place 2 more orders TR & SL. when One of the 2 order get executed the another order will get cancelled automatically.
suppose TR or Sl order not executed system will square off that position near about 3:15 pm for equity order & 4:45 pm for currency order.
Bracket Order Example.
Suppose Mr. Ganesh want to Buy ( Take position) Wipro company share at Rs 100 & his Target price is Rs 101 & Stop loss price is Rs 99 (& current market price is 95)
in this situation Mr ganesh need to set bracket order ( buy trigger at Rs.100 , TR 101 & SL 99). suppose Target achieved than Stop loss will be cancel automatically.
Bracket Order Has Three Different Legs.
1st Leg:- Limit Order / Market Order
2nd Leg:- Stop loss Limit Order / Stop loss Market Order.
3rd Leg:- Limit Order / Market Order.
What Is The Advantages of Bracket Order?
1) Bracket order is very helpful for Intraday Trader.
2) ones you placed Bracket Order u no need to sit in front of Trading desk.
3) Keeps you away from intraday fear & greed situation of intraday market.
What Is Trailing Stoploss Order (SL)?
Trailing stoploss order is unique order type which is newly introduced in india. This order types give ability to trail your stoploss.
What Is The Use Of Trailing Stoploss Order?
If the stock / contract moves in your direction by a particular number of ticks, the stop loss will go up /down based on if you are or short or long automatically.
Trailing Stoploss Order Example.
suppose Mr. Ganesh buy wipro share at Rs.100 with trailing stoploss of 95. if wipro moves upto Rs.103 than automatically StopLoss moves up to 97.