Q1 - What is Bracket order?

Bracket order is a feature for the users whereby the user can limit their loss and lock-in a profit by "bracketing" an order with two opposite-side orders. A Buy order is bracketed by a high-side sell limit order and a low-side sell stop order. A Sell order is bracketed by a high-side buy stop order and a low-side buy limit order. The order quantity for the high- and low-side bracket orders matches the original order quantity.

Q2 - How does Bracket order feature works?

1) Customer places a bracket order such that the parent order (LEG1) is placed with two cover order of the same quantity, ie Book Profit trigger Order (Exit at target)(LEG2) and Loss Exit Order (LEG3).

2) The parent order (LEG1) is immediately send to exchange, were in book Profit triggerorder (LEG2) and Loss Exit Order (LEG3) are at the Sharekhan Application Level.

3) Once the parent order (LEG1) is executed, the book Profit trigger Order (LEG2) and Loss Exit Order (LEG3) are considered for viable condition, ie the condition to check LEG2 and LEG3 touching the market rate.

4) Once viable condition favours, either of the cover order, ie Leg2 or Leg3 is generated and placed to exchange for squaring off the position.

For eg: A normal Buy order placed at Rs10 can be bracketed with a higher Sell order at Rs15 (Profit Booking Order) and a lower stop-loss order at Rs9-Rs8 limit.

Q3 - What if the Parent order (leg1) is partially executed, will Cover Order be fired if the rates are reached?

No, on fully execution of the parent order (Leg1) only, the book profit trigger order (Leg2) or stop-loss order (Leg3) will be considered for viable condition.

Q4 - What if the Cover Order is fired and doesn't get executed, will it reconsider for viable condition?

No, once either of the cover order is fired as and when the price is reached, bracketing stops immediately.

Q5 - What happens to book profit tigger order (Leg2) if stop-loss order (Leg3) is fired on reaching the price?

Once the stop-loss order (Leg3) is fired as and when the price is reached, bracketing stops immediately and the book Profit trigger orderprofit target (Leg2) gets cancelled automatically.

Q6 - What happens to Stop-loss Order (Leg3) if book profit trigger order (Leg2) is fired on reaching price?

Once the book profit trigger order (Leg2) is fired as and when the price is reached, system will try to exit position at best available price. bracketing stops immediately and the stop-loss order (Leg3) gets cancelled automatically.

1) In bracket order, book profit trigger order or stop-loss order is triggered as and when the price is reached, which may or may not be executed at the exchange.

2) In bracket order, post fully execution of Leg 1 order only, book profit trigger order (Leg2) or stop-loss order (Leg3) is fired for squaring off the position.

3) In bracket order, once the Leg 2 or Leg 3 order (ie Squared off order) is fired, the life cycle of bracket order is completed.