Bracket orders are complex orders that are meant to help to make a profit when trade becomes favorable, or limit the loss when it becomes unfavorable, with predefined values. A bracket order is essentially a combination of three regular orders together—an initial order, a target order, and a stoploss order—which act together to help to achieve the specified profit or limit the loss. Along with the regular order parameters, a bracket order takes additional parameters—target, stoploss, and trailing stoploss (optional). The three regular orders are described as follows:
- Initial order: This order is equivalent to a regular limit order or regular stoploss-limit order. Once placed, it remains in the 'OPEN' state until the market price reaches its trigger price value. Once the market crosses the trigger price value, this order moves from the 'OPEN' to 'COMPLETE' state and the target and stoploss orders are placed...
