3 in 1 Order
We are glad to announce the introduction of Bracket Order in INFINI POWER. Let’s us first help you understand what is Bracket Order and how it can benefit you. A bracket order can be used to not only limit your loss but also to protect your profit.
What is Bracket Order?
Through Bracket Order type, you can place three orders at one go:
- The Position creation Order ( buy or sell order)
- Square Off Order (Sell order if your 1st order is Buy and vice versa)
- Stop Loss Order (Sell order if your 1st order is Buy and vice versa)
The first order in ‘Bracket Order’ (Position creation order) has to be a Limit order (A limit order is an order to buy or sell a stock at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guaranteed to execute). Once the first order gets Traded in the market, the system will automatically trigger 2nd and 3rd order into the Market — a Square Off Order (Sell order if your 1st order is Buy and vice versa) and the Stop Loss order (Sell order if your 1st order is Buy and vice versa) based on the inputs entered by you. When any of these two orders get traded (Square off Order or Stop Loss Order), the other one will automatically get canceled. This is the reason why bracket order type is also known as “One Cancels Other” (OCO).
Another cool feature of Bracket Order is that you can convert your Stop Loss order to a Trailing Stop Loss (TSL) order. What that means is that if the stock moves in a profitable direction for you (up if your first order is a buy order, down if your first order is a sell order), the stop loss will automatically adjust in such a way that your interest in the position is protected. For eg., if the first order is a BUY at Rs. 100 with a Stop Loss SELL at Rs. 90 with TSL of 5 and a Square Off SELL at Rs. 110. If the stock price moves to Rs. 105, then your Stop Loss will move up to Rs. 95 and your Square Off will remain at Rs. 110!
Both Square Off Order Price and Stop Loss Trigger Price is set using the following parameters.
Find below a table that explains the functionality of various parameters set in the Bracket Order
|LTP | TICKS||The system will take the Last Trade Price for the trades done for the First Leg Order and add the number of ticks mentioned while placing the order.|
|LTP | ABSOLUTE||The system will take the Last Traded Price for trades done for the First Leg Order and add the absolute price as entered by you.|
|ATP | ABSOLUTE||The system will take the Average Traded Price for trades done for the Order and add the absolute price as entered by you.|
|ATP | TICKS||The system will take the Average Traded Price for trades done for the order and add the number of ticks entered while placing the order.|
|TRAILING TICKS||Trailing tick in Bracket Order is defaulted to a minimum of 20 ticks, that in absolute terms for the NSE comes to 1 rupee (20 ticks*0.05 = 1)|
What is the difference between Absolute and Tick for Bracket Order
When configuring a bracket order, the system gives you the option of specifying the ‘Stop Loss ‘ and the ‘Take Profit order’ in either absolute measures or tick.
Absolute: If you select absolute and enter a value of 10, it stands for Rs. 10. If your buy order gets traded in the market at Rs. 100, your square off order will be placed at Rs. 110.
Ticks: Ticks are just a different way of measuring rupee value. One tick is equal to 5 paise in case of Cash segment and Equity Futures segment. In case of Commodity segment it depends on the contract you have selected. For eg. The tick size of Alumini is .05, whereas the tick size of Nickel contract is .10. The tick size of Crude oil contract is 1, so whether you opt for TICK or ABSOLUTE the value is going to be calculated as 1.
If you select tick and enter a value of 40 ticks for lets say Alumini Contract, it means Rs. 2 (40 * 0.05).
Placing Order in INFINI POWER (EXE Platform of ITS)
Step 1: Select the stock and press F1 if you would want to initiate BUY BO.
Step 2: Select Bracket in the Order form.
Step 3: Enter the BO parameters as explained in the screenshot below :
Here is an explanation to the order placed in the above screenshot:
- The user has placed the First leg buy order in Axis Bank for 1 Quantity @ 552.85
- Square OFF sell Order is placed at 25 ticks, meaning the user wants to take profit once the price reaches 554.1 ( 552.85 + 1.25)
- Stop sell order is placed at 25 ticks, meaning the user wants to book loss when the price comes down to 551.60 (552.85 – 1.25)
- Trailing Stop Loss is placed 20 ticks. What this means is that the moment price reaches 553.85 (552.85+1), the Stop Loss Price will be moved to 552.60 (551.60+1).
What is the margin requirement for Bracket Orders?
The margin requirement for Bracket Orders is the same as that of Cover Order.
|Equity Cash||3% on all F&O trading stocks|
|Commodity – MCX||SPAN/5|
The BETA version of this system is available now. Please email [email protected] or
call 044-39189417/483 to enable BO for your account.
The bracket order will soon be available on INFINI WEB as well.
Cheers, Tradeplus Team.