Get the force of much higher influence, with expanded assurance, furthermore guaranteeing that no profitable position transforms into a loss! Zerodha is the first broker in the nation to introduce Zerodha Bracket Order for retail clients with an extra option of Trailing Stop Loss, for both Equity and F&O (NSE for the present & stock options are not permitted).
Zerodha Bracket Order
A type of trading order where you can enter another position alongside an target/profit taking and a stoploss trading order. When the main trading order is executed the framework will put in two more trading orders (target and stoploss). At the point when one of the two trading orders (target or stoploss) gets executed, the other trading order will get wiped out consequently.
When you put in a bracket trading order, you get a choice to either put in a fixed stoploss trading order, or additionally a capacity to trail your stoploss. What this would mean is that if the stock or future moves toward you by a specific number of ticks, the stop loss will go up/down in light of in the event that you are long or short naturally.
A tick is the minimum value a specific stock/contract can move. So 1 tick on Nifty is 0.05
Essential things to know
This is an Intraday system, so all Bracket order(BO) positions will be squared off by 3:20 PM.
Bracket Order is best on Zerodha’s Pi platform.
Empowered crosswise over Equity, Futures & Options and Currency. Bracket trading order does not took into account Commodities.
Submitting a trading order
Buy Bracket Order Entry: Shift+F3
Sell Bracket Order Entry: Shift + F4
OR right click on the scrip to pick Bracket Order Entry
See the picture above. If I place this order, the system will automatically place a limit buy order at 8469.25. I have mentioned the target is 20 points and the stop loss is 10 points. So once my buy order is filled at 8469.25 two more orders will be placed in the system. One is a profit taking sell order at 8469.25+20 = 8489.25 and another stop loss sell order at 8469.25-10 = 8459.25. I have also mentioned the trail SL as 200 ticks. Nifty’s minimum tick size is 0.05. Hence 200 tick = 200 x 0.05 = 10 points. So once price moves in my direction by 10 points the SL will automatically be trailed by 200 ticks or 10 points. So once price reaches 8469.25+10 = 8479.25 the stop loss will be trailed to 8459.25+10 = 8469.25, i.e. my buy price. In case price hits 8489.25, i.e. my target the stop loss order will automatically get cancelled. Or, if the price hits the stop loss the target order will automatically gets cancelled.
The Margin Advantage
Bracket Order positions get extra leverage subsequent to the danger is covered by the mandatory Stoploss that you place while entering a position. The margin obliged would be taking into account the quantum of your SL, and in the scope of 1.5% to 2.5% of the whole contract size.
To start using bracket order in your trading, CLICK HERE.
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.