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
HDFC SecuritiesFull Service Broker0.05%957,085Open AccountHDFC Securities Review
5paisaDiscount BrokerRs 20 per executed order870,405Open Account 5paisa Review
Kotak SecuritiesFull Service Broker0.049% (both side)743,206Open AccountKotak Securities Review
SharekhanFull Service Broker0.10%679,333Open AccountSharekhan Review
Motilal OswalFull Service Broker0.05% (both side)564,034Open AccountMotilal Oswal Review
IIFL SecuritiesFull Service BrokerRs 20 per order291,730Open Account IIFL Securities Review
Alice BlueDiscount BrokerRs 15 per order or 0.01% whichever is lower125,223Open Account Alice Blue Review
Paytm MoneyDiscount BrokerLower of 0.05% or Rs 10 per executed order85,827Open AccountPaytm Money Review
Dhani StocksFull Service BrokerRs 0 (Free)39,237Open AccountDhani Stocks Review
TradeSmartDiscount BrokerRs 15 per order36,808Open Account TradeSmart 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


2 Comments

Mugen
2. Mugen  May 10, 2021 11:40 I Like It. | Report Abuse Reply
Zerodha sux big time. These MCs have removed the bracket order so that retail traders waste their money and they can make all the money via brokerage. They can easily be sued with a class action lawsuit for this malpractice.
Puneet
1. Puneet  Oct 29, 2020 08:19 I Like It. | Report Abuse Reply
Any broker offering Bracket order after the market closes?








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