Bracket and Cover Order

What is a Bracket Order ?
Bracket orders are designed to help limit your loss and lock in a profit by "bracketing" an order with two opposite-side orders. A BUY order is
bracketed by a high-side sell limit order and a lower-side sell stop order. A SELL order is bracketed by a higher-side buy stop order and a lower
side buy limit order.
The system will simultaneously place three orders: a limit buy order (1st leg), a corresponding stop loss market order which would only get
triggered at the specified stop loss trigger price (2nd leg), and a corresponding limit sell order with profit objective in mind will get triggered at
the specified price point (3rd leg).
If the stop loss trigger price is hit, the stop loss order gets executed as a market order and the 3rd leg will get cancelled automatically.
Similarly, if the limit sell order with profit objective gets hit, the stop loss automatically gets cancelled. This kind of order is also called OCO
orders ie one cancels another.
Trailing Stoploss feature

When you place a bracket order in nest trader you get an option to either place a fixed stoploss order, or also an ability to trail your
stoploss. What this would mean is that if the contract/stock moves in your direction by a particular number of ticks, the stop loss will go
up/down based on if you are long or short automatically.
Difference between Absolute and Tick for Bracket Order

When typing in a bracket order, the system lets you specify the Stop Loss and the Take Profit order in either in absolute or tick. So let us
understand what is the exact difference between absolute and tick.
Absolute
Absolute stand for the actual point difference, nifty from 5000 to 5050 is absolute difference of 50 points.Suppose you have traded nifty at
5000 and you have entered 50 in the square off target,so in that case your square order will be placed at 5050 .50 absolute points from 5000.
Ticks
The bare minimum upward or downward movement in the price of a security Is known as tick. One tick is equal to 5 paise (1 tick = .05
rupee),(100 ticks= 5 point) and 1000 tick will 50 points.
One have to place stop loss either selecting absolute or tick.Suppose you want to place a 50 point stop loss,so if you are clicking absolute you
have to enter 50.and if you are selecting tick for 50 you have to type in 1000 ticks.
Placing a Bracket Order in TRADEJINI NEST TRADER

You can trade bracket in the following three ways:
1. Right-clicking on a scrip in Market Watch –> Selecting Bracket Order –> Buy/Sell Bracket Order.
2. Click on the Orders and Trades menu –> Select Bracket Order –> Buy/Sell Bracket Order.
3. Using the shortcut key
Shift+F3 for buy
Shift+F4 for sell.

Modifying a Bracket Order
One can only modify the limit price if the order is not completely executed, however if it is completely executed one canonly modify trigger for
profit booking and also the stoploss.
Exiting a Bracket Order
One can only exit a bracket order it cannot be cancelled normal orders,we can exit bracket orders clicking the exit button from the orderbook
.Suppose the first leg of the order is not traded and you press exit ,then it will cancel the first leg order.If the first order was traded, then the
system will modify the Square Off order from Limit to Market and cancel the Stop Loss order.
All Bracket orders In the system will be automatically squared around 3.15
Margin Requirement
Bracket Order as a product gives you leverage of almost 40 to 50 times,such a high leverage is possible as the trader is required to place a
compulsory stop loss with every trade.The margin required for this kind of orders are very low around 1.5% to 2.5%.Smaller stop loss requires
less margin ,whereas margin goes up with higher stoploss but within the specified range.
Placing Bracket Order is allowed for NSE (Equity F&O& CDS).

Covered Orders
Cover Order – Meaning

Cover order is like any other market order but placed with a compulsory stop loss. The initial order whether a buy or sell is always a market
order.Its very useful for intraday trader because of the higher intraday leverage along risk management thanks to compulsory stop loss.
As stop loss is mandatory for the trade the risk taken reduces and thanks to reduced risk the margin required to trade
also reduces. All cover orders In the system will be automatically squared around 3.15 so as said earlier it’s a good tool from intraday trader
perspective.
Placing Cover Orders is allowed for NSE (Equity & F&O).

How does a covered order work?
Cover orders are two legged orders ,the buy/sell order goes to exchange with a compulsory stop loss order .The initial buy/sell order has to be
a market order the compulsory stop loss order will be three as a pending order in the order book until triggered, once triggered it will be
executed as a market order. There is max stop loss % that can be placed; anyone placing a covered order has to adhere to that range. For
Tradejini the max percent is 1.5% so stoploss need to be place within 1.5% of the buy/sell order price. For example suppose a stock is trading
at 100 then the stop loss range will be between Rs 98.50 to Rs 101.50 as the trigger price. One can always modify the stop loss but within the
price range. The margin for the position will be recalculated once the order is modified.
A Cover Order is basically a two legged order. The client needs to place a buy/sell order
How to place Cover Orders
To place a Cover Order, click on the contract and click Shift + F1 for placing a buy Covered order or Shift + F2 for placing a sell Covered order.
You can also place Cover Order from the “Orders and Trades” menu on Tradejini nest trader.
Spread orders
A spread order is a combination of individual orders (legs) that work together to create a single trading strategy. Spread types include futures
spreads, and combinations of option/option, option/stock and stock/stock on the same or multiple underlyings.
So lets find out how it is done through tradejini nest trader.
Spread Order (shortcut key): Ctrl+ Shift + F1

After clicking the Spread Order the following window pops up and do note the 3 different order types in the pic below:
1. Order Type, SP (Spread):this kind of order is generally used to rollover the positions for next month or to trade calendar spreads
. A calendar spread is a contract where you buy/sell a particular month contract (Futures or Options) and sell/buy (take an opposite
position) of the same contract of a different month.
2. Order type : 2L/3L: This order placement tool can be used to trade pair trades or for trading complex option strategies which
uses multi leg positions.
SL-M order
The difference between a stop loss (SL) and a SL-M order is the absence of trigger price. In a stop loss order you choose price but
with a trigger price. What a trigger price does is that it activates your order which otherwise is inactive. This order is treated like a
limit order. So if there is a very sharp fall it may happen that the stop loss may not be executed. So for the rescue we have SL-M
order ,in this we don’t have to enter any price we have to enter only the trigger price. The moment the trigger price is hit sl will be
sent as a market order and will immediately executed.
Market Order'
An order that an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price. A market
order is the default option and is likely to be executed because it does not contain restrictions on the buy/sell price or the timeframe in which the order can be
executed.
Limit Order'
An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Because the limit order is not a market order, it may not
be executed if the price set by the investor cannot be met during the period of time in which the order is left open. Limit orders also allow an investor to limit
the length of time an order can be outstanding before being canceled.

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What is a Bracket Order ?

Trailing Stoploss feature

Difference between Absolute and Tick for Bracket Order

Placing a Bracket Order in TRADEJINI NEST TRADER

Shift+F3 for buy

Shift+F4 for sell.

Exiting a Bracket Order

Placing Bracket Order is allowed for NSE (Equity F&O& CDS).

Cover Order – Meaning

Placing Cover Orders is allowed for NSE (Equity & F&O).

How to place Cover Orders

So lets find out how it is done through tradejini nest trader.

Spread Order (shortcut key): Ctrl+ Shift + F1

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