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. BO is there for both Equity and Futures and Options.
Bracket Order FAQ
A bracket order is a special type of order where a trader can put the target and stop loss in the same order. The advantage of bracket order is that here the mental attachment is very less for a trader. Simply put the target and stop loss in the same order and leave the terminal. One way OR the other the market will move. Either it will hit the target OR it will hit the stop loss. If the target gets hit the stop loss order will be canceled automatically and if the stop loss gets hit the target order will be canceled automatically.
A bracket order or BO is a special type of trading order where you can enter into a position alongside a target/profit-taking and a stop loss trading order. When the main trading order is executed the framework will put in two more trading orders (target and stop-loss). At the point when one of the two trading orders (target or stop loss) gets executed, the other trading order will get wiped out consequently.
You need to select a stock or future in your market watch and right-click on it. There you can select Bracker Order and in its sub-menu, you can select a Buy Bracket Order or a Sell Bracket Order. Check the image below to understand the procedure.
When you put in a bracket trading order, you get a choice to either put in a fixed stop loss trading order, or additionally a capacity to trail your stop loss. 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 a minimum value a specific stock/contract can move. So 1 tick on Nifty is 0.05.
The Bracket Order is an Intraday system, so all BO positions will be squared off by 3:20 PM. This order type can not be converted to CNC as this is typically an intraday product
Bracket Order on Zerodha Pi Platform
Submitting a BO in Zerodha Pi
- 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 second 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, the system will automatically place two more orders. 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 the 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 the price hits 8489.25, i.e. my target the stop loss order will automatically get canceled. Or, if the price hits the stop loss the target order will automatically get canceled.
Bracket Order on the Zerodha Kite Platform
Many traders are now aware of the BO facility Zerodha Kite.
Time needed: 1 minute.
How to put Bracket Order on Zerodha Kite?
- Login to Kite
First of all, open Kite by typing kite.zerodha.com in your web browser or open the kite app in your mobile. Log in with your client id and password.
- Selecting the stock or future in your Market Watch
Next, you need to select your Market Watch and select the script you want to trade. Put the mouse on the scrip and the BUY / SELL option will be visible as shown in the image below.
- Buy Bracket Order
Select BUY if you want to buy the scrip and it will open up the BUY order window. Click on more options and you can see 4 options – Regular, BO, CO, AMO. Click BO and you are on the BUY bracket order screen. Put quantity, price on the first line and stop loss (in points in multiples of 1) and target (in points in multiples of 1) and click on buy. It will create the BUY order and send it to the exchange. Optionally you can put and trailing stop loss (in points in multiples of 1).
- Sell Bracket Order
For a sell bracket order, you need to choose SELL in point number 3 in the list above. Remember for a BUY bracket order the target price should be higher than the market price and the stop loss should be lower than the market price AND for a SELL bracket order the target price should be lower than the market price and the stop loss should be higher than the market price.
The Margin Advantage in BO
Bracket Order positions get you much higher leverage. Leverage can go up to 1:20 in equity and 1:55 in FNO. This is an added advantage of bracket orders. You can also cover the danger of loss by the mandatory Stoploss that you place while entering a position. The margin needed 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.