How does bracket order work exactly?

I have been trading in oversees forex for the past 3 years and recently read that RBI has put a ban on it for some time so i have switched to indian market .

My question is in bracket order you get to set your stop loss and take profit level simultaneously but as the bracket order is not executed at market price how does it work ?

for suppose nifty futures is trading at 6500 and i need to open a position with a 10 point stop loss and a 20 point target. In this case as market price is 6500 I need to keep my stop loss at 6490 and take profit at 6520. Now this being a limit order at what price will my order get executed ?

thank you

Everything you need to know about placing bracket orders at Zerodha is on this post. 

You are not mentioning your Target and Stop Loss as 6520 and 6490 explicitly.

You will need to mention in Absolute points as 20 and 10, or in ticks as 400 and 200 respectively.

This is where the catch is, whether you place a limit order or market order, the target and stop loss are set based on the execution price.

  1. If you have placed limit order at 6500, it will execute when it gets 6500, your target will be set at 6520 and Stop Loss as 6490
  2. If partial execution happens at 6500, you will get the Target and Stop Loss set like point1 only for those qty. Remaining qty will be waiting until it gets the price of 6500.
  3. Say you have placed a market order and the average execution price is 6501, your target will be set at 6521 and Stop Loss as 6491.

Hope this clears!

Yup I asked after reading that blog