What is a Bracket Order (BO)?

What is a Bracket Order (BO)?

It is an order which enables the investor to place two orders simultaneously. 1) The price at which he/she would sell the investment to book profits, 2) The price at which he/she would sell the investment to reduce losses.

For example, suppose MR.X has purchased shares @₹100. He would like to sell his shares if the stock went up to ₹110 (where he makes a profit of ₹10) or if the stock price went down to ₹98 (where he makes a loss of ₹2). Mr.X can place a take profit and stop-loss order as follows: Take profit price = ₹110, Stop loss price = ₹98. If the stock went up to ₹110, then his shares will be sold and automatically the stop loss order will get cancelled. Similarly, if the stock went down to ₹98, his shares will get sold and the take profit order will get cancelled.

Note: Due to the underlying volatility in the Crudeoil and Natural Gas contracts especially on the Inventory days, most of the time,  both the Stoploss and/or Target order gets triggered in BO/CO trades. To avoid this, we suggest the traders to use wider Stoploss/Target on such inventory day.

    • Related Articles

    • What is the effect of Bracket Order (BO)?

      The investor can specify his/her profit expectation as well as the maximum risk that he/she would be willing to incur in a single order.
    • Why did my CO/BO order get executed at different price points?

      Cover Order (CO) and Bracket Order (BO) are types of multi-legged orders that come with pre-defined stop-loss and/or target levels, alongside the main entry order. The execution of these orders is dependent on the available Bid/Ask in the market for ...
    • Can I place BO/CO for options on the FYERS platforms?

      Certainly! FYERS platforms support the placement of BO/CO orders for Index options. Although we previously suspended BO/CO orders for the Options Segment (from 27th September 2021 to 31st January 2023), we reinstated this feature for the Index ...
    • How to exit my order partially?

      Once the order is placed and your desired P&L is attained, you can Exit/Square-off using the ‘x’ option on the chart as shown below: However, if you want to partially exit the open position/s, the above-mentioned method doesn’t apply as the whole ...
    • What is Pre-Market and how can I place the order during that time?

      Pre-Open Market is the period where the trading activities take place just before the commencement of the regular stock market session. The pre-open market sessions are scheduled between 9:00 AM and 9:08 AM on the trading days for both the National ...