Want to know about Upstox bracket order? Does Upstox have bracket order? Yes, it is available in both Equity and Commodity. Upstox is a popular discount brokerage firm in India that provides online trading services to investors and traders. It offers a user-friendly trading platform, low brokerage fees, and a range of financial products including equities, derivatives, commodities, and currency derivatives. With advanced technology and innovative solutions, Upstox aims to make investing and trading accessible to everyone. The main stock brokers providing bracket orders in India are Upstox, Zerodha, Kotak Securities, HDFC Securities, IIFL Securities, Sharekhan, Motilal Oswal, Alice Blue, TradeSmart and5Paisa.
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Table of Contents
How to Place Bracket Order in Upstox?
Why Place Bracket Order in Upstox?
How Do Bracket Orders Work in Upstox?
Upstox Vs Zerodha Bracket Order Placement
What Is a Bracket Order?
A Bracket Order is a trading strategy used to gain intra-day positions while minimizing losses and maximizing profits. The strategy involves placing three orders simultaneously: a limit order, a stop loss order triggered at a specified price, and a profit objective order triggered at a set target price. If the stop loss price is reached, the stop loss order is executed as a market order, and the profit objective order is canceled. If the target price is reached, the stop loss order is canceled.
This combination of orders is known as a Bracket Order, which reduces potential losses and allows for profit booking at a specified target price.
Upstox Bracket Order – How to Place Bracket Order in Upstox?
Is upstox bracket order blocked? No! Is bracket order available in Upstox? Yes, very much! The Upstox Pro web and Upstox Pro app trading platform offer a unique feature called bracket orders (BO) which allows its customers to place intraday orders that are three-legged. This order is known as OCO (One cancel others) order, comprising:
- Step 1 – Buying and selling the scrip.
- Step 2 – Placing a stop-loss order.
- Step 3 – Profit booking order.
Steps for Placing Upstox Bracket Order
How to place bracket order in Upstox? Here are the steps to follow:
- To initiate an Upstox bracket order, a user is required to access the Pro web or Pro mobile app, and then add the desired scrip in their watchlist.
- Next, he should select the “Buy” option and choose “OCO” under the order complexity option.
- Following this, he must enter the necessary order type, price, quantity, stop-loss sell, and target sell details.
- Once all the details have been entered, the user should carefully review and recheck the information before submitting the order.
Why Place Upstox Bracket Order?
Placing Upstox bracket order offer significant benefits to traders by allowing them to place three trades through one order, reducing their exposure and risk while maximizing their potential for profits. The system automatically cancels one order if the other is executed, ensuring that traders are protected.
With a stop loss order placing, you can reduce your risk exposure and potential losses. In this approach, your stop loss order is executed as soon as the trade hits the loss limit, and there is cancellation of the order that makes profit.
Additionally, the trailing Stop Loss functionality allows orders to automatically adjust to the current market price. These features enable Upstox traders to trade in a more disciplined manner, reducing their risk while increasing their chances of success. When the stop loss orders undergo an automatic adjustment, the trailing stop loss can get an even bigger benefit. For such an adjustment, the trailing stop loss function follows the trailing market price.
Bracket Orders also offer margin benefits, allowing traders to leverage their positions while being protected by a stop loss order. It offers you the chance to record earnings using a pre-established profit objective price order.
Overall, Upstox bracket order provides traders with a valuable tool to manage risk and increase profitability.
How Does Upstox Bracket Order Work?
Your order will be completed or bracketed by a bracket order. The target order, stop-loss order, and initial order are normally the first three orders of an Upstox bracket order. While the others are in opposition to each other, the first order might be either a purchase or a sell.
Therefore, the other two orders are sell orders in case the first order is a buy order. Only any of the other orders will be placed in addition to the first one. Furthermore, the remaining two orders won’t be placed in case the initial order is not placed. This is because there are no market orders; all of them are limit orders.
If you first ordered shares at 50 INR per-unit rate, set your stop-loss order at INR 48 and target order at INR 55, the first order will be fulfilled only upon the market reaching INR 50.
If the share price rises and touches INR 55 by the end of the day after the order is executed, you will be able to place your sell order, and the stop-loss order will be canceled by the broker.
However, if the market declines and the share price declines, the broker will cancel the target order and issue the stop-loss order when the price of share goes up to INR 48.
Check out our in-depth comparison between Angel One and Upstox charges.
Upstox Bracket Order Vs Zerodha Bracket Order Placement
The main differences between placing Upstox Bracket Order and Zerodha Bracket Order are:
- Platform: Upstox provides the Pro web and Pro mobile app trading platforms to place bracket orders, while Zerodha provides the Kite platform.
- Order complexity: Upstox allows customers to place OCO orders, which are 3 legged intraday orders, while Zerodha allows customers to place 3 orders bundled in one.
- Availability: Upstox bracket orders are allowed for all segments, including BSE stocks, commodities, and currency, while Zerodha allows bracket orders only for NSE and NSE F&O.
- Auto square-off: All bracket orders on Zerodha are auto squared off automatically, while there is no such requirement on Upstox bracket orders.
- Scrip addition: In Upstox, customers need to add the scrip to the watchlist before placing the bracket order, while in Zerodha, customers need to add the scrip to the market watch.
- Order type selection: In Upstox, customers need to select OCO under the order complexity option, while in Zerodha, customers need to select BO.
- Target and stop loss details: In Upstox bracket order, customers need to enter target sell and stop-loss sell details, while in Zerodha, customers need to enter target price and stop loss.
- Order placement process: While the process for placing bracket orders on both platforms is quite similar, there are slight differences in the options and windows that customers need to navigate through to place the order.
Check out our article on Zerodha Brokerage Charges. Click here to open an account in Zerodha.
Conclusion
Everything is easy and automatic in Upstox, from placing to executing a bracket order. Upstox Bracket Order is automatically closed as soon as the profit levels are realized. The entire procedure is hassle-free, easy, and effortless. Naturally, it is more appealing and effective for traders.
Know the advantages of opening an account in Upstox from this video.
https://dematdive.com/upstox-bracket-order-placing/
