Brokers with Bracket Order

Brokers with Bracket Order and Cover Order

A Bracket Order is an advance order type to help traders to limit the losses and increase chances of profitability. It's an order with an opposite-side order placed together (i.e. a buy order is bracketed by a high side sell limit order, and a low side sell stop order).

Bracket orders (BO) have a fixed stop-loss trailing order. To advance this further, some broker offers Bracket Order Trailing Stop-loss. This provides an ability to trail your stop-loss (dynamically). It means the stop-loss keeps moving based on the direction your stock or contract moves.

Bracket orders and cover orders are key risk management tools for a trader. A handful of stock brokers offer this order type to the traders.

Bracket Order Broker List

Broker Category Brokerage (Eq Intraday) Active Clients Request Callback Review
ZerodhaDiscount Broker₹20 per executed order or .03% whichever is lower1,746,614Open AccountZerodha Review
HDFC SecuritiesFull Service Broker0.05%729,868Open AccountHDFC Securities Review
UpstoxDiscount Broker₹20 per executed order or 0.05% whichever is lower729,858Open AccountUpstox Review
Kotak SecuritiesFull Service Broker0.049% (both side)604,820Open AccountKotak Securities Review
SharekhanFull Service Broker0.10%552,897Open AccountSharekhan Review
5paisaDiscount Broker₹20 per executed order534,655Open Account5paisa Review
Motilal OswalFull Service Broker0.05% (both side)396,575Open AccountMotilal Oswal Review
IIFL SecuritiesFull Service Broker0.05%228,467Open AccountIIFL Securities Review
Alice BlueDiscount Broker₹20 per order or 0.01% whichever is lower50,803Open AccountAlice Blue Review
TradeSmartDiscount Broker₹15 per executed order27,104Open AccountTradeSmart Review

Bracket Order Advantages

  • Bracket Order has 3 orders placed from 1 screen - Entry, Target and Stop-loss order.
  • Bracket Orders are valid only for intraday trading. All Bracket order positions are squared off by end of the trading day.
  • The margin required for Bracket Order is half of normal MIS intraday trading orders.
  • Bracket Orders are available only for Equity and Currency. They are not available for Commodity Trading at MCX.

Disadvantages of Bracket Order

  • Not available for trading in Stock Options, Currency options, and Commodity options.
  • In the case of flat rate brokers like Zerodha and Upstox, the brokerage charges in a bracket order are unpredictable. If the entry price of some of these shares is slightly different in order, the system creates separate target and stop-loss orders for each price.

Cover Order vs Bracket Order

  • Each bracket order is a set of 3 orders (Entry, Target, and Stop-loss). Each cover order is a set of 2 orders (Entry and Stop-loss).
  • Both offers equally higher leverage.

Read more about Bracket Order Explained with Example


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