Live Now: Bracket Orders for Options Trading on Dhan

Product Announcements 🔈
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Hello everyone!

We are introducing Bracket Orders(BO) for Options Trading on Dhan!

Yes, you heard it right. Earlier, we revoked Bracket Orders as order type for options to comply with exchange guidelines, post that we have made required changes in our order management & risk management systems to offer Bracket Orders orders for all our Option Traders on Dhan across our platforms.

We mentioned reintroducing Bracket Orders back in September - here, it took us some time, and finally we are elated to announce that now you can seamlessly place Bracket Orders in Options starting today on Web, Dhan App & Options Trader app.

BOC
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So, what’s new with Bracket Orders this time?

To explain this, let’s start with Bracket Orders first. Essentially, there are three legs in a Bracket Order that you need to add:

  • Entry Leg - Limit order at which you enter the position
  • Target Leg - Absolute value difference between desired Target trigger price and entry leg
  • Stop Loss Leg - Absolute value difference between desired Stop Loss trigger price and entry leg
    Note: Stop Loss range will be 80% of the Entry leg price

For the new Bracket Orders, we have made changes only for the Stop Loss leg. Currently, Stop Loss (as Market Order) is not allowed at exchange level. Hence, we have implemented a Market Price Protection (MPP) which would essentially convert Stop Loss trigger to SL-Limit order.

Let’s review with an Example…

Suppose that an index option is trading at ₹500. Assuming that you want to execute a Bracket Order at this price, you place a Bracket Order on Dhan with the following three values:

  1. Limit Price = ₹500
  2. Target = ₹100 (Target Price will be ₹600)
  3. Stop Loss = ₹50 (Stop Loss Price will be ₹450)

Over here, once your entry leg has been executed, our system will create the Target Leg and Stop Loss Leg. In case of Stop Loss leg, since Stop Loss Market order is not allowed at the exchange as a product type, we instead create a Stop Loss Limit order with ₹450 as trigger price and ₹405 as limit price (90% of Stop Loss trigger price).

Now, if your Stop loss leg gets triggered, we would essentially place a limit order at 90% of trigger price which would execute at the best available price in the market at that instance.

If you wish to edit the SL leg order, you will find two values in the order edit screen which is Trigger Price and Limit Price. We recommend you to keep sufficient difference between the two values in order to ensure your order is executed when triggered.

Moreover, whenever you are exiting a Bracket Order, make sure to reconfirm the status of both the pending order legs at your end.

Currently we have allowed Bracket Orders in Liquid Index Options for the current month only - which is NIFTY50, BANKNIFTY & FINNIFTY.

Note: In case your Entry Leg is executed in multiple trades, subsequent orders will be created for Target and Stop Loss leg, which may result in brokerage being charged on multiple orders for executed leg.

Hope the introduction of Bracket Order now makes it further easier for our Options Traders on Dhan to trade across our platforms.

As always, we are building at Dhan for our users.

Happy Trading

– Hardik
Product

14 Likes
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Awesomeness unlimited. How about trailing SL

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@Dhan needs to work on this, when Stop loss is 450 it needs to be placed near 445 or 440

90% of Stop Loss trigger Price to too bad for Option Buyers, in these Volatile markets we are Observing Stoploss Hunting more in Trading now a days so think about this twice & make some good adjustments

90% of Stop Loss Price is very bad for Traders, even Professionals & Experts also won’t keep that much difference

Thnaks

2 Likes
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@Hardik May I know the reason for this statement?

“Moreover, whenever you are exiting a Bracket Order, make sure to reconfirm the status of both the pending order legs at your end.”

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Thanks for taking up the BO request. However, the implementation is not useful to me and, I safely assume, to many other index option traders, not only because it has no TSL, but the way it has been implemented. I repeat the same statement I had voiced before in the “request for CO/BO with TSL thread”:
“As long as the broker is able to send the limit order to the exchange when the SL hits, the broker’s job is done.”

It is not the broker’s job to impose at what value should the customer send the limit order after the SL is hit. Sorry, this imposition makes me wonder if those who designed this implementation have any real options trading experience! The values used in the example shout out so!

With this kind of implementation, I have to ask something again, hoping for an answer this time. Does Dhan have its own prop trading? Thanks.

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Hello @TheRadhaKrishna

Let me clarify on this. When you place Stop Loss as ₹450, it is the SL trigger price. Now, this gets converted into an SL-Limit order at ₹405 as and when your stop loss is triggered. This essentially means that if your entry leg is buy order, then a limit sell order at ₹405 will be created. Now, as you may already know how Limit orders work, in case of a Limit Sell order, it will get executed at best possible price as per available market depth between ₹405 and ₹450 which should be close to ₹450 only in case of liquid scrips.

Moreover, you can edit this SL-Limit price by modifying the order once your entry leg has been executed.

Hope this answers your question.

2 Likes
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Thanks @Hardik for Your Clarification

i will try this tomorrow, but the default 90% of Stop Loss Price is very bad for Traders think about this

2 Likes
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thanks for the bo, can we place bo from dhan tv charts also?

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@Dhan , Mobile application, we need to fix Target and Sl in terms of % and web its value, is it correct

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Dear @Dhan @Dhan_Cares @Hardik
The bracket order feature is not showing in my Dhan option trading app
Kindly hep

Screenshot_2022-12-14-22-34-20-804_com.dhanoptions.live
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I think this is for intraday only, did you check the trading tab?

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@onkar just now I got to know about the lunching of bracket order and checked my dhan option trading app and it is not there . Tomorrow I will check it live .
Thank You @onkar

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Hi @DebadattaMahakud

You may select Trading/Intraday for Bracket order, as it is a special type of intraday order. Also, you can update your app to the latest version, if not updated yet.

1 Like
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Hey @vinay_sd17

Bracket Order is defined as an Algo Order by the Exchange. Although it is an OCO order, we still ask users to confirm when exiting Bracket Order that one of the legs have been executed and the other leg has been closed successfully.

1 Like
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Thank You @Sameet @Hardik
Just now I check it and for intraday it is there…
Really it is a very important feature I was looking for scalping.
Thank You @Dhan for listening to trader’s heartbeat :heartbeat:

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@Hardik I will share the feed back on the close of other legs

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Hello @moksha

Dhan does not own any prop trading firm, as it is strictly against our values. We focus solely on offering best product and tech experience to our users.

To answer your question on the implementation of Bracket Order, as mentioned in the post, Stop Loss Market orders are not allowed by the Exchange itself. This is the reason why we have implemented this system which in turn will make sure our users can benefit from BO as order type on Dhan. Moreover, we have kept the option to edit this Limit Price from the order modification screen as well.

For Trailing Stop Loss, we have an option to add TSL from Positions page directly - more details here. This is something that we have built after interacting with a lot of super traders.

Hope this helps!

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@Hardik Thanks for your response on prop trading.

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good , i waiting for also bracket order for commodity orders

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hi @naren, Bracket Orders for Commodity will take time, we don’t want to rush into this. The liquidity for commodity contracts is quite low, while we can offer the feature - it will execute sometime or may not, will be randomness and may lead to an experience that is not great. Hope you understand.

Also welcome to Dhan community :slight_smile:

1 Like