I placed a Bracket order, but the SL price was set to a random price rather than the price that I entered. Why is Zerodha modifying the order without my consent?
The exit leg of bracket orders (BO) has been changed from the Stoploss-market (SL-M) order type to Stoploss (SL) due to an update in the exchange mandates.
The exchange requires brokers to use “Market Price protection” with the price protection percentage set to a certain % of the LTP (Last trade price). Due to this, when you enter your SL trigger the price automatically gets set base on the market protection price (i.e 20% of LTP).
An important thing to note here is, the moment your trigger is hit, the order will get executed at the next best bid/offer - similar to SL-M. However, the range within which it will get executed will be limited.
Refer to this support article for a more detailed explanation with examples.