Scribd
Upload
61 views2 pages

Types of Order

The document outlines various types of stock market orders used by investors, including Market Order, Limit Order, Stop Loss Order, and others. Each order type has specific conditions for execution, such as price limits and timeframes. Key examples illustrate how these orders function in practice to help manage trades and minimize losses.

Uploaded by

Pratiksha Saxena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
61 views2 pages

Types of Order

The document outlines various types of stock market orders used by investors, including Market Order, Limit Order, Stop Loss Order, and others. Each order type has specific conditions for execution, such as price limits and timeframes. Key examples illustrate how these orders function in practice to help manage trades and minimize losses.

Uploaded by

Pratiksha Saxena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

When trading shares in the stock market, investors use different types of orders

to buy or sell stocks. Here are the main types of orders:


1. Market Order
 A buy or sell order that is executed immediately at the best available
price.
 Example: If a stock is trading at ₹500, a market order will execute at the
current market price, even if it fluctuates slightly.
2. Limit Order
 An order to buy or sell a stock at a specific price or better.
 Buy Limit Order: Executes only at or below the specified price.
 Sell Limit Order: Executes only at or above the specified price.
 Example: If you place a buy limit order at ₹490 when the stock is at ₹500,
the order will only execute if the price drops to ₹490 or lower.
3. Stop Loss Order
 A conditional order to buy or sell a stock once it reaches a specified price
to limit losses.
 Example: If you buy a stock at ₹500 and place a stop-loss order at ₹480,
it will trigger a sell if the price falls to ₹480, minimizing losses.
4. Stop-Limit Order
 A combination of a stop order and a limit order. Once the stop price is
reached, it turns into a limit order instead of a market order.
 Example: A stop-limit order to sell a stock at ₹480 with a limit of ₹475 will
trigger a sell order at ₹480, but it won’t execute below ₹475.
5. Trailing Stop Order
 A dynamic stop-loss order that adjusts automatically as the stock price
moves in a favorable direction.
 Example: If you set a 5% trailing stop-loss on a stock at ₹500, the stop
price moves up as the stock price rises but stays 5% below the highest
price reached.
6. Good Till Canceled (GTC) Order
 A limit order that remains active until executed or manually canceled by
the trader.
7. Immediate or Cancel (IOC) Order
 The order executes immediately, either fully or partially. Any unexecuted
portion is automatically canceled.
8. Fill or Kill (FOK) Order
 The order must be executed in its entirety immediately; otherwise, it is
canceled.
9. Day Order
 An order that remains valid only for the trading day. If not executed, it gets
canceled at the end of the day.
10. Bracket Order
 An order that includes a target price and a stop-loss price simultaneously.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy