Bracket Order (BO) in Share Market: A Comprehensive Guide
Introduction
In the world of stock trading, a Bracket Order (BO) is a special type of order that combines three different orders into one. It’s designed to help traders manage their positions effectively and control their potential losses and profits. Let’s break down the components of a Bracket Order and understand how it works.
Components of a Bracket Order
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Initial Order (Entry Order):
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The Initial Order is the first part of a Bracket Order. It’s the order you place to enter a trade. This order comprises three sub-orders:
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Buy/Sell Order: This is the main order to buy or sell a stock.
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Trigger Price (TP): This is the price at which your main order gets activated. If the stock reaches this price, the main order is placed in the market.
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Stop-loss Order (SL): This is a pre-defined price set by the trader to limit potential losses. If the stock’s price moves against the trade, this order is executed to limit the loss.
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Target Order (Take Profit Order):
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The Target Order is the second part of a Bracket Order. It’s the order you place to secure profits.
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Sell Order: This is the order to sell the stock once it reaches a specified profit level.
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Target Price (TP): This is the price at which your sell order is placed in the market to lock in profits.
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Stop-loss Order (SL):
- This is the same as the stop-loss order in the initial order. It’s reconfirmed in the Target Order to ensure that even if the trade goes against you after reaching the profit level, you can still limit your losses.
How a Bracket Order Works
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Scenario A: Trade Goes in Your Favor
- If the stock price moves in the direction you anticipated, and it reaches your Target Price (TP), the sell order is executed, and you lock in your profits.
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Scenario B: Trade Goes Against You
- If the stock price moves against your trade, and it reaches your Trigger Price (TP) from the Initial Order, the sell order is executed. This limits your potential losses.
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Scenario C: Trade Moves in Your Favor, Then Against You
- If the stock price initially moves in your favor and reaches your Target Price (TP), but then reverses and hits your Trigger Price (TP) from the Initial Order, the sell order is executed to lock in profits. Additionally, the Stop-loss Order (SL) from the Target Order is also placed, limiting any further losses.
Key Points to Remember
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Bracket Orders are beneficial for traders who want to automate their trade management and set specific profit and loss levels.
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They are a risk management tool that helps traders limit potential losses while aiming for specific profit targets.
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It’s important to set realistic and strategic Trigger Prices, Target Prices, and Stop-loss levels based on market analysis.
Conclusion
In a nutshell, a Bracket Order in the share market is a powerful tool that combines three different orders into one, allowing traders to manage their positions efficiently. By using Bracket Orders, traders can set specific profit targets and control potential losses, making it an invaluable strategy in the world of stock trading.
How to apply for Bharti
To apply for, follow these general steps:
Check Eligibility Criteria :Before applying, make sure you meet the eligibility criteria mentioned in the official notification of the recruitment you are interested in. Criteria usually include educational qualification, age limit and sometimes physical standards.
Registration : Visit the official website and navigate to the "Apply" section. There, you will find the ongoing recruitment links. Click on the appropriate link for the Bharti you wish to apply for.
New Registration : If you are a new user, you need to register first. Provide required details like name, date of birth, email id and mobile number to create your account.
Login : After registration, login using the credentials you provided.
Fill Application : Fill the application form with accurate details of personal information, educational qualification, work experience (if any), etc. Be sure to double-check all information before submission.
Upload Documents : Upload scanned copies of required documents like passport size photograph, signature, educational certificates etc. as per the specifications mentioned in the notification.
Fee Payment : Pay the application fee online through the payment gateway provided. Fee payment details will be available in the notification.
Submit Application : After completing all the steps and verifying the information provided, submit your application to
Print Application Form : After successful submission, download and print a copy of your application form for future reference.
Admit Card : Keep an eye on the website for updates regarding release of admit card in . Download your admit card once it is available.
Prepare for the Exam : Start the recruitment exam preparation as per the syllabus and exam pattern given in the notification.
Appear for the Exam : Appear for the exam on the scheduled date, at the designated exam center.
Check Results : After the exam, check the website regularly for updates on the result declaration.Remember to stay updated with the notifications and announcements issued by regarding the recruitment process.
Selection Process for Bharti
The selection process for recruitment usually consists of several stages:
Notification : Releases notification for various posts throughout the year. These notifications contain details like eligibility criteria, exam dates, syllabus and application process.
Application : Candidates must apply online through the official website within the specified dates mentioned in the notification. They have to fill the application form, upload the required documents and pay the application fee.
Admit Card : After the completion of the application process, it issues the admit card to the eligible candidates. Admit cards contain details like exam date, time and venue. Candidates must download and print their admit card from the official website within the specified time. Admit cards are required to enter the examination hall and candidates must carry a valid photo ID at the examination center on the day of the examination.
Exams: Different types of exams are conducted depending on the posts
Result Declaration : It declares the result of each level of examination on its official website. Candidates who are eligible for one tier are eligible to appear for next tier.
Document Verification : After qualifying all levels of the examination, candidates are called for document verification. They need to provide original documents like educational certificates, identity proof and other necessary documents as specified by .
Final Selection : Final selection is based on candidate's performance in all levels of examination as well as verification of their documents. Merit lists are prepared based on the total marks obtained by the candidates.
Appointment : Candidates selected as per merit list are appointed to respective posts as per available vacancies.