In this tutorial we are going to talk about what is bracket order & how to place a bracket order in zerodha pi. First I’m going to explain what is bracket order & for which purpose we are using bracket order instead of normal buying or selling order. After that I show you how to place a bracket order with an example.
Bracket Order: In my last tutorial I show you how to place a cover order in zerodha pi. Bracket order is little more advanced version of cover order. By using cover order we are able to place buying or selling order along with stop-loss order in under same order window. Bracket order gives us even more flexibility than cover order. In bracket order we are able to place our buying or selling order along with our Stop-loss, Target and Trailing Stop-loss order in under one order window. This is the beauty of the bracket order. So let me show you how to place a Bracket order in Zerodha pi.
Placing a Bracket Order:
- First you have to do is login in your zerodha pi platform. After that select the scrip in which you want to place a bracket order. Right click on your scrip & select the buy bracket order option or selling bracket order option. You can also do the same by pressing Shift+F3 for buying & Shift+F4 for selling in your keyboard.
- After clicking on the buy bracket order option. A new order window will gonna pop-up. If you opening a bracket order window first time than it will looks little complicated & you don’t know what is the meaning of LTP, ATP, Ticks & Absolute option meaning. So before I show you how to place a bracket order first I want to clear these above things.
- All the bracket order type are Limit order. If you are don’t know what is Limit order & how to place it than you first read my article on How to Place Limit, Market, SL and SL-M Order in Stock Market.
- All the bracket orders are MIS (Intraday) order.
- The meaning of LTP is (Last Traded Price). This is the price where last trade is got executed in the market.
Your LTP & ATP column is available in Market watch window. If you don’t have that option than you can add this by right clicking on any column.
- The meaning of ATP is (Average Traded Price). This price is the Average price of all the trades executed on that scrip. If the first trade is executed at 930, Second is 932, Third is 931 than AVG price is 930+932+931/3=931 (AVG Price).
- If i select Absolute than I have to enter how many above and below points for my target and stop-loss order. In simple words If i choose Absolute than I have to mention my stop-loss & target price in points. For example If my limit price is 930 & my target is 935 than I have to enter 5 in Absolute price box.
- If I select the ticks option than I have to mention my target & stop-loss in ticks value. 1 tick is equal to 0.05 Paisa or points in Indian equity market. So in that case if I want to place my target price 5 points above my limit price value than I have to enter (5/0.05)=100 points in Tick size box.
I recommend you to use Absolute price rather than ticks. Because ticks is little confusing & complicated to calculate. In absolute points you only have to mention points in your target & stop-loss order. On the other hand in ticks first you have to covert ticks into points & than you will able to enter your value.
- In this example I’m going to place bracket buy order on Reliance Industries. So first you have to enter the Limit price in limit price box. In my case the current market price of Reliance Industries is 923 & I want to place my limit price is 922.
- After that now I want my target price to be 10 points above from my limit price. For this I have to select Absolute option & enter the 10 in the box. With this now whenever the market price got reached 10 points above from my limit price (922+10=932). My position automatically got square-off.
- I also want my stop-loss to be 3 points below from my limit price (922-3=919). For this all I have to do is select the absolute option & enter the 3 in box & hit the submit order button.
- With this 3 order goes into the system. First one is Limit Order (at 922 Price), Second one is Target order (at 932 Price) & third one is my stop-loss order (at 919 Price). System will automatically square off the position whenever my target or stop-loss got hit first. If my target got hit first than system also cancel my stop-loss order. If my stop-loss order got hit first than system will also cancel my target order.
- I also want to show you how to place a Trailing stop-loss order but it will makes my article too big to read. I promise in my next article I show you you to place a trailing stop-loss order in bracket order window.
- So in this tutorial you will learned low to place a order along with your target & stop-loss order. If you have any doubt & question than don’t forgot to leave your comment down be
low. I will definitely helps you out.
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