Bracket Orders (BO) have been discontinued due to the challenges they present in highly volatile market conditions.

A Bracket Order (BO) is a type of intraday order that allows traders to enter a position with a predefined target (profit-taking) order and a stop-loss order. Once the main order is executed, the system automatically places these two orders. If one of them gets triggered, the other is automatically cancelled.

BOs were widely used because they offered higher intraday leverage due to the mandatory stop-loss requirement.

Why Are Bracket Orders Not Allowed?

During high volatility, both the stop-loss and target orders may get executed almost simultaneously, leading to unintended open positions and increased risk for both the trader and the brokerage firm.

For example, suppose a buy Bracket Order is placed for 100 shares of Reliance at ₹1,300, with a target price of ₹1,305 and a stop-loss at ₹1,295. If the stock price suddenly drops to ₹1,295 and then immediately rises to ₹1,305, both the stop-loss and target orders would execute, resulting in:

• A sell order at ₹1,305 (target hit)
• A sell order at ₹1,295 (stop-loss hit)

This would leave the trader with an unintended short position of 100 shares, increasing the risk, especially if this happens close to market closing, leading to overnight exposure. Due to such recurring issues, Navia has decided not to allow Bracket Orders.

Alternatives to Bracket Orders

Traders can use MIS (Margin Intraday Square-off) product and manually set stop-loss and target orders without the risks associated with Bracket Orders.