Bracket Order
One click that fires three legs simultaneously — entry, target, and stop-loss — bracketing the trade so the system manages exits even when you step away.
Definition
A bracket order (BO) is a broker-side order type available on NSE and BSE for intraday trading. It bundles three legs into a single order placement: (1) the entry order — a limit or market buy or sell; (2) a target leg — a limit order in the opposite direction placed at a specified profit price; and (3) a stop-loss leg — a stop-loss trigger order placed at a specified loss price. When the entry fills, both the target and the stop-loss legs go live simultaneously. When either exit leg executes, the broker automatically cancels the other, ensuring the position is always fully managed. All open legs are forcibly squared off before market close at 3:20 PM IST.
Why it matters
Intraday F&O traders on NSE face the dual challenge of managing risk in fast-moving markets while often being unable to watch the screen continuously. A bracket order solves this by making both exit conditions machine-enforced from the moment of entry. This removes the emotional friction of manually hitting a stop-loss when a trade goes wrong — a well-documented source of intraday losses for retail traders. Because bracket orders can carry reduced margin requirements compared to a plain intraday order on some broker platforms (due to the pre-defined risk cap), they also allow more efficient capital allocation. The system-enforced intraday square-off also ensures no accidental overnight positions in leveraged F&O instruments, avoiding potentially large gap-risk exposure. Bracket orders are widely used in Nifty and Bank Nifty futures scalping and options selling strategies during the first and last hour of trading.
How it works
After the entry leg fills, the target and stop-loss legs coexist in the broker's order management system as a one-cancels-other (OCO) pair. The target leg is a resting limit order on the exchange. The stop-loss leg is a trigger-based order that converts to a market or limit order when the LTP reaches the stop price. If the target is hit first, the position is closed at profit and the stop-loss leg is cancelled. If the stop-loss triggers first, the position exits at a controlled loss and the target leg is cancelled. Some brokers offer trailing stop-loss functionality within bracket orders, where the stop-loss price adjusts upward (for a long) as the trade moves in your favour, locking in progressive profit.
Example
Suppose Bank Nifty futures are near 51,000 and you want to take a 20-point long scalp with a 15-point stop. You place a bracket buy order: entry limit at 51,000, target at 51,020, stop-loss trigger at 50,985. Once the buy fills at 51,000, the system simultaneously places a sell limit at 51,020 and a sell stop at 50,985. If Bank Nifty climbs to 51,020, your sell limit executes for a ₹500 profit (1 lot = 25 units, 20 × 25) and the stop cancels. If instead the market dips to 50,985, the stop fires and you exit at approximately 50,985 for a ₹375 loss (15 × 25). The trade resolves automatically either way without further action.
Find your entry levels on the live chain
TradePulse shows real-time Bank Nifty and Nifty OI and premium data to help you identify where to set your bracket targets and stops.