Stoxkart one of the discount brokers in India is offering many trading services and segments that help the trader to make money using different options. Along with the trading option, it also provides the choice of different order type like the one Stoxkart Bracket Order.
Before moving ahead, let’s understand the basics of Stoxkart.
Stoxkart was founded in 1990 and is a part of the SMC Global. With around 124765 client base, the broker is growing continuously to attain a good position among the leading discount brokers.
In simple terms, you can place a bracket order when you trade safely as it shields your trade between entry and target price. With the Stoxkart bracket order, you can trade-in equity cash, equity F&O, Commodity F&O, etc.
Also, to execute the bracket order in Stoxkart you can reap the leverage of a high margin that gives you the chance to earn more profit with the minimum investment.
If you are into stoxkart commodity trading, then it can benefit you with margin. The Stoxkart commodity margin for bracket order is 25x for intraday while it is 6x for futures.
Now wondering how this order actually works. Well! we understand your doubts and hence here we are with a detailed explanation of the same.
How Stoxkart Bracket Order Works?
Now how does the bracket order in Stoxkart works? Well! to make efficient use of trading with the broker, open a demat account.
Once you are done with the account opening process, you will then be provided with the login credentials that you can use to access different trading platforms and apps.
The Stoxkart Trading app (Stoxkart Pro) not only helps you in the analysis of stocks but also in placing an order.
To put the Stoxkart bracket order, log in to the app and select the scrip in which you want to trade.
Click on buy or sell and select the trading segment and the order type.
Post this click on bracket order.
Now since the bracket order is three-legged order, you have to enter the entry price, i.e. the price in which you want to buy a stock, stop-loss price (to minimize your losses), and last the target price to define the profit you want to earn from the trade.
Stoxkart Bracket Order Example
To understand it, let’s take an example.
Now suppose you want to trade in stocks of Infosys that are currently at ₹1293.80 per share. You want to buy 100 stocks but at ₹1290. So here you enter the limit order price equals ₹1290.
Next, to minimize the loss, you enter the stop-loss price at ₹1288. Thus if the stock price goes down, even in that case, you would suffer a loss of ₹2 per share thus the overall loss of ₹200.
Since every trader sees a good profit in his or her trade. Seeing a profit of at least ₹1000 you set a target price equal to ₹1300.
Now once you are done with the process of order placement, four different situation arises that are discussed below:
1. If the Entry Price Is Not Reached
Since the bracket order is executed only to do intraday trade, so here if the limit price you set is not reached by 3:15 PM then your order gets canceled immediately.
2. Entry Price (₹1290) Executed but SL or Target Price is Pending
Now once, the entry price is executed, the stop loss and the target price is activated, but if none of these prices is hit before 3:15PM then the system automatically converts the bracket order to buy or sell order and square off the position at the current market price.
3. Entry Price (₹1290) & Target Price (₹1300) is Executed
Now let’s suppose, the market trends go in your favor and reach the target price, then the order gets executed and the stop-loss price is canceled automatically.
4. Entry Price (₹1290) & Stop Loss Price (₹1288) Executed
If the market goes down and hits the stop-loss price before the Stoxkart square off time then the target price is canceled by the system.
Stoxkart Bracket Order Charges
Now for every type of trade, the broker charges certain brokerage charges. To execute a trade using the Stoxkart Bracket order you have to pay certain fees. This fee is generally the one that you have to pay to execute intraday trading.
Execution charges: for every executed order, the trader has to pay ₹15/ per order. (profit only).
Call and trade charges: additional charges of Rs.20 per order in two ways :
For orders placed via support or the dealing desk.
Intraday positions squared off before the market closed by Stoxkart’s RMS team.
Now let’s jump to the leverage that you can get while placing Stoxkart Bracket order. To place the Stoxkart Bracket order you are provided with the facility of margin.
Here you can get a margin of up to 25x i.e. 25 times margin that opens a gateway for you to earn 25 times more profit on the trade you execute.
Considering the last example, your total order value is ₹129,000. But you do not have enough funds.
Initially, you have around ₹6000. You can ask your broker to provide you the leverage and seeing the market trend the broker offers the margin of ₹123,000 (almost equal to 25 times of the initial funds) that helps you in executing trade without any limitation or shortage of funds.
In the end, we can say that with the choices of various trade orders, you can enter into different types of orders to buy or sell stocks efficiently.
Before jumping over to do trade, please be aware of the various order types that you will use to buy or sell the stocks.
Stoxkart’s brokerage charges are the lowest. This platform will provide you the easiest and simple online browsing for smooth trading.
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