Bracket order is a convenient tool for intraday traders to place buy/sell and stop loss profit booking instructions in one go.

Bracket orders have two legs: the main leg and the stop loss/target leg. For instance, you want to buy PNB based on technical analysis and already have a target price or stop loss in mind. You don’t need to place a buy order first and keep tracking the stock price to see if it hits stop loss or target and then place another order. You can do all that in a single bracket order.

Make sure you select BO when selecting the order type on the order window as shown above. This type of order is not available for delivery trades and can only be used for intraday trading.

To place a BO order, search for the stock and add it to Market Watch. Hover your cursor over the stock on Market Watch and select B or S for buying or selling. An order window will open. Select intraday and BO and select limit or market order for the main leg. Then enter the target and stop loss trigger price. You can either put this as a percentage or a difference in prices.

Any modification of trade is possible only until the first leg of the trade is not executed. Once that leg is triggered, your second leg of the order will go when the stop loss or target is hit.