What Is a Bracket Order?

• Primary Order: The initial market or limit order to enter the position.
• Target Order: An exit order to book profit when the price hits your desired level.
• Stop-Loss Order: A protective order to limit downside if the trade goes against you.

 Why Use a Bracket Order?

1. Automated Exit Strategy – Predefine your profit target and stop-loss before entering the trade.
2. Reduced Emotional Bias – Since exits are rule-based, you're less likely to panic or act impulsively.
3. Better Discipline – BOs enforce structured risk management, which is key to long-term trading success.

Use Cases for Bracket Orders

How to Place a Bracket Order on the RMoney Rocket App?

1. Open the RMoney Rocket App and select your preferred segment — Equity or F&O.
2. Search for the desired stock or instrument (e.g., Canara Bank, Nifty Futures).
3. From the Product Type menu, choose “Bracket Order (BO)”.
4. Enter the primary order details:
   • Choose Order Type: Market or Limit.
   • If you select Limit, specify the entry price.
   • Enter the Quantity you wish to trade.
5. Set the Target (Profit Booking Level):
   • Enter your profit target under the Square Off
   • This value must be in absolute points, not price level.
   • For example, if Canara Bank is trading at ₹111.6 and you want to book profit at ₹115.6, enter 4.
6. Set the Stop-Loss:
   • In the SL (Stop Loss) field, input the points by which you'd exit if the trade goes against you.
   • Example: For a stop-loss at ₹109.6 on Canara Bank trading at ₹111.6, enter 2.
   • You may also enable Trailing Stop-Loss (TSL) by checking the box and specifying the trailing value.
7. Place the Order:
   • Once the primary order is executed, the system automatically places both the target and stop-loss

 Best Practices for Using BOs

1. Set Realistic Targets – Base your profit and stop-loss on technical indicators or price behavior.
2. Position Sizing – Calculate trade size based on your capital and acceptable risk. Traders often use risk-reward ratios like 1:2 or 1.5:2 or vice versa depending on their strategy.
3. Adjust for Volatility – Experienced traders adjust their SL and targets in volatile market conditions to maintain their risk.
4. Margin Awareness – Ensure sufficient margin since both target and stop-loss orders remain active until one executes.

Conclusion

1. You enter a trade with a pre-set profit target and stop-loss.
2. The system automatically activates both exit orders.
3. Once one leg is triggered, the other is automatically canceled, securing either your gain or limiting your loss.

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