Brokers Offering Bracket Orders and Cover Orders (INDIA)

Bracket Orders and cover orders share many similarities, which we will explore here. Besides their procedural similarities, both types of orders come from one basic idea of mitigating risk in an ever-volatile market; therefore, we will also examine Stock Brokers with these orders.

What Is a Bracket Order? A bracket order can be defined as an extended cover order with extra steps.

Start simply: An order occurs when you submit the desired quantity and price to buy or sell into your broker’s system as an order ticket. If someone or more than one match the descriptions on your ticket – such as quantity and price preferences – then your order goes through and you receive or sell assets.

What Are Target Price & Stop Loss? Target/exit prices allow traders to set an upper limit to their transaction when entering orders in long positions; when stock prices move beyond this particular threshold, their broker would automatically sell shares by creating an order and book profit. Stop losses function similarly but provide lower limits instead, to help take proactive measures against cumulative losses.

Imagine all this on a number line, where each price point represents either your stop loss, purchase price, target exit price or bracket order – in other words where transactions should occur and stock held; should it exceed either upper or lower limits on this number line, immediate action must be taken such as selling it immediately.