Bracket Order IMPORTANT QUESTION

General
1

Please clarify few important questions regarding BO.

1> BO is a limit order that means if the CMP is 500,I want to place BUY order at 499,so if the price comes to 499 then only my order will get executed otherwise nothing will happen?

2>If that order gets exucuted at 499 then two orders will be there in the system. Either Stoploss order will get executed or else Target will get executed. ?

Example : Price = 499(BUY), Stoploss = 3 Absolute points , Target = 2 Absolute points.
3> If this is the situation I know if I buy 100 shares in XYZ at 499 price with the above setup, the order will be spilit into multiple orders. That means if my Target hits at 501 then do I need to exit the order or it will be automatically done as it already met the target.?

4> How you will calculate the brokerage as the order has splitted into 2 to 3 multiple trades?What will be the brokerage amount in this tyoe of setup?

Please Note: I have already gone with all the links of videos and user manual as well the article in Zerodha website where details are given regarding BO. Please clarify in details.

2

1- You are absolute correct.
2- You are right.
3- Yes no need to exit either SL or target and you can modify these targets and SL after initial orders are placed by the system
4- For calculating brokerage for multiple exit order you have to calculate brokerage for different orders separately. If the trading value for exit order is less than 20000 then brokerage will be 0.1% of traded value else separate ₹20 for each order and for FnO ₹20 for every exit order.

3

Thank You for reply. I understood all the 3 points. But the 4 point regarding brokerage I am still confused.

Example : Suppose ACC has a lot size of 400. I have placed a BO in F&O in ACC. SO the quantity 400 has spited into 10 orders of each 40 quantity. Now if my Target meets how the brokerage is going to be calculated?

5

now if you are in FnO your orders gets filled in multiple of lot sizes so brokerage will be flat ₹20 for exit and entry for 1 lot and if you buy/sell multiple lots and your orders gets filled in multiples say for example you buy 10 lots and your gets filled in multiple of 1 so for your entry order you will be charged ₹20 but for exits you wil be charged ₹20*10(multiple in which your order gets filled)= ₹200
And for equity brokerage will be charged separately for each others as per the calculation already explained.
Lets assume you buy ACC 300 qty in CASH at 1172
and your order gets filled in following installments
30, 5, 8, 2, 25,120, 35, 45, 25, 5 now lets calculate brokerage
for 30 qty, Traded Value (30*1172=35160), Brokerage charged for this exit order ₹20
for 5 qty, Traded Value (5*1172=5860), Brokerage charged for this exit order (0.1%*5860) ₹5.87
for 8 qty, Traded Value (8*1172=9376), Brokerage charged for this exit order (0.1%*9376) ₹9.37
for 2 qty, Traded Value (2*1172=9376), Brokerage charged for this exit order (0.1%*2344) ₹2.34
for 25 qty Traded Value (25*1172=29300) Brokerage charged for this exit order ₹20
for 120 qty Traded Value (120*1172=140640) Brokerage charged for this exit order ₹20
for 35 qty Traded Value (35*1172=41020) Brokerage charged for this exit order ₹20
for 45 qty Traded Value (45*1172=52740) Brokerage charged for this exit order ₹20
for 25 qty Traded Value (25*1172=29300) Brokerage charged for this exit order ₹20
for 5 qty Traded Value (5*1172=5860) Brokerage charged for this exit order (0.1%*5860) ₹5.87

Total brokerage to be paid on exit order is ₹143.45

6

Please be informed that ONLY some brokers provide a LIMIT entry bracket order. With Zerodha Bracket Orders execute at CMP which makes it a MARKET entry Bracket Order.

7

You need to inform yourself that zerodha also provides Limit BO orders, for market orders they have CO with same leverage.

8

Have you tried it yourself ?

Zerodha’s LIMIT BO’s execute at CMP

9

I do most of my trades using BO and CO. Read more about BO/CO here.
An abstract from the blog I shared
Flow: Order Placement & Execution

Step 1: Place a limit order to buy/sell to enter a position, note that there is only limit order, and if you intend to buy/sell at market, place an order with higher/lower limit price respectively

1 Like
10

Till now I used to trade with small quantities with CO. But with CO I sometimes face problem either the price I want to buy/sell has already crossed.Thats why I was looking for a good alternative. From October onwards I am planning to increase my lots.Still now worried which product type will suit me.

11

BOs with zerodha work in 2 cases :

  1. If you are waiting to enter at a pullback at a pre-determined price level.
  2. If you are at ur trading terminal and waiting for price to hit a particular level and then u click to enter.

Ideal situation would be If we are allowed to enter SL-Limit BO orders which currently is not available with Zerodha.