Many traders are now aware of Zerodha Kite bracket order. What is a bracket order (BO)? 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.
How to put Zerodha Kite bracket order?
1) Open Kite by typing kite.zerodha.com in your web browser or open the kite app in your mobile.
2) Log in with your client id and password.
3) Select your MarketWatch.
4) Select the script you want to trade.
5) Put mouse on the scrip and the BUY / SELL option will be visible as shown in the image below:
6) Select BUY if you want to buy the scrip and it will open up the BUY order window.
7) Click on more options and you can see 4 options – Regular, BO, CO, AMO.
8) Click BO and you are on the BUY bracket order screen.
9) Put quantity, price on the first line and stop loss (in points in multiple of 1) and target (in points in multiple of 1) and click on buy. It will create the BUY order and send it to the exchange.
10) Optionally you can put and trailing stop loss (in points in multiple of 1).
For a sell bracket order, you need to choose SELL in the point number 6 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.
Margin and Zerodha Kite bracket order
Bracket order can give 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.
Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. She is a NISM certified Research Analyst. An experienced stock market content writer Ankita is also trading successfully on her own account.