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Brokers with Bracket 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
5paisa	Discount Broker	Rs 20 per executed order	1,089,828	Open Account
HDFC Securities	Full Service Broker	0.05%	977,645	Open Account
Kotak Securities	Full Service Broker	0.049% (both side)	844,627	Open Account
Sharekhan	Full Service Broker	0.10%	734,556	Open Account
Motilal Oswal	Full Service Broker	0.05% (both side)	680,499	Open Account
IIFL Securities	Full Service Broker	Rs 20 per order	350,024	Open Account
Paytm Money	Discount Broker	Lower of 0.05% or Rs 10 per executed order	161,752	Open Account
Alice Blue	Discount Broker	Rs 15 per order or 0.01% whichever is lower	141,760	Open Account
Fyers	Discount Broker	Rs 20 per executed order or .03% whichever is lower	55,902	Open Account
Dhani Stocks	Full Service Broker	Rs 0 (Free)	39,237	Open Account

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

5 Comments

5. Chirag Aug 29, 2021 14:56

For Stock options (derivatives) trading , Does any broker allows CO or BO ??

4. Alok Aug 22, 2021 01:54

Which broker currently allows bracket order.As Zerodha doesn’t

3. Puneet Oct 29, 2020 08:19

Any broker offering Bracket order after the market closes?

3.1. Chetan Aug 15, 2021 13:00

You can place bracket orders for Intraday as well as delivery after market with
Sharekhan.

2. Surendrakumar Sadashiv Shete Jun 2, 2021 22:43

Nice

1. Mugen May 10, 2021 11:40

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.

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