What is a bracket stock order?

In a bracketed sell order, the trader first determines a short sell price at which they wish to sell. They enter into a contract to sell short. They then bracket that order with a buy order at a specified price above the short sell price and a buy limit order at a specified price below the short sell price.

Is bracket order and OCO same?

Because of this nature, bracket orders also are termed “One Cancels Other” or OCO. Another neat feature of Bracket Orders is that you can make your Stop Loss order a Trailing Stop Loss (TSL) order.

What is bracket order with example?

Bracket orders are an effective way to manage your risk and lock in a profit on an order that has yet to execute. In this example, you want to buy 100 shares of XYZ stock, which has a current Ask price of 30.00. You expect the price to fall to 25.00, then rise to 30.00.

Does Upstox allow bracket order?

As already mentioned, the Upstox OCO order is a bracket order not only “limits losses” but also “locks profit” by placing 2 more orders side by side (just like a bracket). One single Upstox OCO order places 3 subsequent orders namely: A buy/sell position initiation order (must be a limit order only)

Can bracket order be Cancelled?

The trader can exit from the bracket order only at the market price. If the trader wishes to exit the bracket order, he should reverse his position at the market price. The other two orders, i.e. the stop loss order and the exit order get cancelled automatically on exiting the bracket orders.

What is limit price in bracket order?

Bracket orders are designed to help limit your loss and lock in a profit by “bracketing” an order with two opposite-side orders. A BUY order is bracketed by a high-side sell limit order and a low-side sell stop order. A SELL order is bracketed by a high-side buy stop order and a low side buy limit order.