Bracket Order is a boon to intraday traders because it uses the much needed StopLoss to an order. Also, zerodha offers a high(20 times) leverage for Bracket Orders. A Bracket Order is a bundle of 3 orders. If you are going short then one buy and two sell orders.

Many traders I have come across complain that they have issues with Bracket order. They get errors like “RMS : client not enabled on product”, ”first leg of order already rejected” etc., You can actually solve this easily as explained in the error section.

What is a Bracket Order?

Putting a bracket for the profit and loss is called as a Bracket Order.

Bracket Order Zerodha

Imagine you buy some shares at blue arrow. You sell it at the red arrow. This is the usual long process of trading. But in Bracket order, you have to specify where to sell at two points. One Sell when the curve is going in your direction and the other is when the curve is going against your direction(Stop loss).

Buy - This is the price at which you bought the share.

Sell - This is the price at which you want to sell the share.

Sell - This is the price at which you want to sell to avoid more loss.

Bracket order on zerodha

Here is an example of a Bracket order where I’m buying shares and then selling at a higher price.

Bracket order on zerodha example

Here I’m buying 500 shares of SBIN at 283.85(current price). I will be selling it at 287.85(Target 4 points) if the curve moves up 4 points. I will sell it at 279.85( Stop Loss 4 points) if the curve moves down 4 points.

This is the basic mechanism of a bracket order. There is also an option to have a trailing stop loss. What it does is that it moves the stop loss by 1 point if the curve goes in our direction by one point.

Bracket order is a very useful option available for intraday traders. We set the maximum profit and loss that we can afford and that way it is a safe way to trade. Many people loose a lot of capital just because they forgot to set stop loss and did not track the curve.

For a guy like me who has no time to watch the market all day long, Bracket order is a boon. I just have to make a few orders and I’m done for the day. I don’t even have to watch the market. I know what profit I will make if it goes well and what losses I have to bear if it goes bad.

Exit Bracket Order

Once you Bracket Order, you can wait till the target to hit. If you want to exit in the middle then you will have to go to Orders tab and exit from there.

Remember, a bracket order cannot be exited with another bracket order

Zerodha Bracket Order not enabled error!?

In zerodha, Bracket order is not enabled by default for some reason. You will have to contact the support team to enable it. If you are facing errors while trading using Bracket Order for the first time then please send and email to support@zerodha.com.

Here is the email I sent

To: support@zerodha.com

Subject: Bracket Order error

Hi zerodha, My name is <Name>. My client ID is *****. I see enabled products as CO, MIS, NRML, CNC. 
Is there a reason why BO(Bracket Order) is not enabled?

They replied pretty soon saying

Dear <Name>, 

Thank you for contacting us.
We have enabled your BO(Bracket order), kindly re-login and check. The BO order will be enabled based on client requirement.


Regards,
Suresh

The issue got resolved the very same day!

Let me know if I have missed anything on Bracket Orders. Thanks for reading.