uTrade AlgosA bracket order is an advanced order type that allows traders to enter a position with built-in exit strategies. It essentially “brackets” your trade by simultaneously placing three orders:
- Entry Order: This is the initial order to buy or sell a security.
- Target Order: This order is set to automatically exit the trade when a predetermined profit level is reached.
- Stop-Loss Order: This order is set to exit the trade if the price moves against you, limiting potential losses.
A cover order is a type of order where you place an initial market or limit order along with a compulsory stop-loss order. Unlike a bracket order, a cover order does not have a target order—only an entry and a stop-loss.
How to Place Bracket and Cover Orders on Share India?
Step 1: Search for the stock you want to trade.
Step 2: Select ‘Buy’ or ‘Sell’ based on your trading preference.
Step 3: Select ‘Cover Order’ or ‘Bracket Order.’
Step 4: For the cover order, select the initial limit or market order and set the amount for the mandatory stop-loss order. Make sure the stop-loss price is less than the initial order price.
For bracket order, set the initial limit price, stop-loss amount, and target price. The stop-loss price should be lower than the initial order price, and the target price should be more than the initial order price.
Step 5: Enter the remaining details, review the margin and charges, and confirm your cover or bracket order.