Bracket Order with trigger price in India ?

Bracket Order is a useful Intraday Order Type for many day traders in India.

Bracket order helps you place the entry, target and stop loss orders all at one go and from a single Window.

This also know as the lazy boys order, maximum output with very less effort.

Bracket Order is a algorithmic product that calculates your optimum stop loss risk range, and helps you leverage you funds over the roof.

Why traders use Bracket order ?

  1. Daytraders use Bracket Order to get the maximum leverage on their trading funds. Bracket Order provides more Intraday Leverage than placing a normal Intraday BUY or SELL entry order. Since you are mandatory placing the stop loss along with your entry order, the risk is reduced. Your broker is happy to let you have more leverage when using Bracket order for your intraday trading. The leverage on Bracket orders are exponentially more compared to normal order types.
  2. Beginner traders find it as a very convenient order type to minimize their loss and make them stick to a trading plan. Since the stop loss order is placed at the time of entry, the chance of beginners holding on to loosing trades are minimized.

What are the limitations of a Bracket order ?

  1. When you place a Bracket order, the trade is opened immediately at the Current market price. Traditionally, you cannot use Bracket Orders for trading breakouts or entering a buy or sell position at a specific  price that is above or below the current market price.
  2. Each leg of the Bracket Order is technically considered as a separate trade. This makes it a windfall opportunity for many discount brokers to charge you for each trade of the order executed. You have no control on how many trades gets executed in a single bracket order. If not carefully used , you would end up paying way more brokerage that a normal buy or sell order.
  3. After you enter a trade, the option to make changes to each leg of the open bracket order is very limited and dependent on the broker involved.

Which Broker provides a Bracket Order facility with trigger price in India ?

Currently, Upstox and Zerodha are 2 brokers that has the facility to let you place a bracket order that executes only at a specific trigger price.

With the release of KITE 3 during DEC 2017, this feature is now available on the Zerodha Kite 3 web Platform.

With Upstox you can place a bracket order to EXECUTE ONLY at a specific price, which is very useful for Breakout traders.

  1. You can place  a BUY Bracket order to execute only at a price above the current market Price, ideal for Resistance / High of day Breakout traders.
  2. You can place a SELL Bracket order to execute only at a price below the current market price, ideal for Support / Low of day Breakdown Traders.

Please be aware that you cannot set the stop-loss trigger price as same as your entry limit price.

The stop loss price can be set only at a price within a range that is well below the actual entry trigger price.