A Bracket Order (BO) allows you to place a trade with an entry price, stop-loss, and target (profit-taking) in one go. This order type is mainly used for intraday trading to manage risk and automate exits.
Step-by-Step Guide to Placing a Bracket Order
Step 1: Open the Trading Platform
- Log in to your broker's trading platform (web or mobile app).
- Navigate to the order placement section.
Step 2: Select ‘Bracket Order’ as the Order Type
- Choose the BUY or SELL option based on your trade direction.
- Select Bracket Order (BO) from the order type options.
Step 3: Enter Order Details
- Stock/Instrument: Select the stock or index you want to trade.
- Order Type:
- Limit Order – You specify the price at which to buy/sell.
- Market Order – The order executes at the current market price.
- Quantity: Enter the number of shares/contracts you want to trade.
- Price (for Limit Orders): Specify your desired buying/selling price.
Step 4: Set Stop-Loss & Target Levels
- Stop-Loss: Enter the price at which your position should be exited to minimize loss.
- Target (Profit Booking): Enter the price to book profits.
Step 5: Confirm & Place the Order
- Review all details carefully.
- Click Place Order.
Step 6: Monitor & Exit (If Needed)
- Once your main order is executed, the stop-loss and target orders are placed automatically.
- The stop-loss order is cancelled if the target is hit, and vice versa.
- You can modify or cancel the bracket order before execution.
