Bracket Order is A type of order where you can enter a new position along with an exit and a stop loss order. As soon as the main order is executed the system will place two more orders (profit taking and stop loss). When one of the two orders (profit taking or stop loss) gets executed, the other order will get canceled automatically.
Cover Order Is used for higher leverage, is any market order which is placed along with a Stop Loss Order. In a Cover Order the buy/sell order is always a Market Order and is accompanied with a compulsory Stop Loss order, in a specified range. This Stop Loss Order cannot be canceled.
You have provision to enter the trade through a Limit Order (No slippage)
In cover orders you dont have these 3 feature.
But cover orders work even if internet gets disconnected or you log off/switch off your trading system. Bracket Orders wont work in such cases, you need to be logged on, in order for it to work.
Remaining all are same between Cover Order and Bracket Order, with respect to the logic how it functions.
Edit:
Also Bracket orders may execute as multiple trades, instead of single order you placed, therby charging you with more brokerage. which is not the case with cover orders which will charge you flat 20 for buy and 20 for sell.
Can you please explain where we are paying more brokerage in bracket orders.
example: i placed bracket order for buy, if it was executed, my sell orders will be in pending. (stop loss / target),
if any my sell order got executed second pending order will be canceled.
so one buy order and one sell order executed. nothing more.
explain if anything missing.
Cover order can also be executed in multiple trades so not sure why bracket order would attract more brokerage.
Don’t get the logic of bracket order working only when you are logged on. Aren’t the orders tracked and executed at kite’s backend? Is there any official documentation that mentions this limitation?