Why has Tiqs stopped Bracket Orders (BO)?

A bracket order is a type of advanced trade order that allows you to place multiple orders at once. It's kind of like a package deal for trades. It combines a primary order, such as a market or limit order, with two other orders: a stop-loss order and a target order.

There are a few potential problems with bracket orders:

• They can be complex to set up, and traders may make mistakes when setting the parameters.
• If the market moves too quickly, the stop-loss or target orders may not be filled, which can result in significant losses.
• They can increase transaction costs, as multiple trades are being executed.
• The Main problem with bracket orders is stop-loss slippage.

For Ex: Assume you placed a bracket order of IOC at a price of 70 with a target of 72 and stop loss of 68. In case of sudden extreme volatility, the price went to 68 and again 72. Then unintentionally 1 short position will create. This is too risky that is why the Tiqs stopped BO.

Note: In July 2020, SEBI adopted intraday peak margin limits that forbid brokerage companies from providing leverage more than the VAR +ELM, with leverages decreasing gradually until August 2021. Therefore, all of our intraday products, including Bracket orders, MIS, and Cover Orders (CO), must offer the same leverage. The required stop-loss order prevents the employment of any more leverage. In light of this, you could just utilize MIS or CO to obtain the same leverage as BO.