What is the Full Form of BO in the Share Market?

The BO full form in the share market is Bracket Order. It enables the investors in stock trading to place two orders simultaneously. He can place both orders at a price at which he would sell the investment to book profits and at a price to reduce losses. Bracket orders are placed only during intraday trading.

The benefits of bracket order:

The first benefit of bracket order is that it enables traders to place three orders in one instance. This is highly beneficial for intraday traders, who are expected to acquire a profitable position in six hours. Bracket order helps intraday traders curb certain risks and also help them book a profitable position with the target order or avoid losses through stop-loss orders in place.

How does a bracket order work in the share market?

Traders place three interconnected orders for a single trade when they execute a bracket order. These three orders are the initial buy order, the profit target order, and the stop-loss order. They help in creating a cohesive trading strategy right from the beginning. It creates a protective bracket around the initial trade. The profit target and the stop loss order work in combination to safeguard the position of the trader from untoward market conditions.