TYPES OF ORDERS

TYPES OF ORDERS

1) MARKET ORDER – It is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A market order generally will execute at or near the current price. However, it is important for investors to remember that the last traded price is not necessarily the price at which a market order will be executed.

2) LIMIT ORDER – It is an order to buy or sell a security at specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can be executed at the limit price or higher. Example: An investor wants to purchase shares of ABC stock for not more than rs.10. The investor could submit a limit order for this amount and this order will only be executed if the price of ABC stock is rs.10 or lower.

3) STOCK ORDER – It is often referred as stop-loss order, it is an order to buy or sell a stock once the price of the stock reaches the specified price, known as the stock price. When the stop price is reached a stop order becomes a market order.

4) IMMEDIATE OR CANCEL ORDER(IOC) – An IOC order mandates that whatever amount of an order that can be executed in the market (or at a limit) in a very short time span often just a few seconds or less be filled and then the rest of the order will be canceled. If no shares are traded in that ‘immediate’ interval than the order is canceled completely.

5) FILL OR KILL – This type of order mandates that the entire order size be traded and in a very short time period, often a few seconds or less. If neither condition is met, the order gets cancelled.

6) GOOD TILL CANCELED (GTC) – this is a time restriction that you can place on different orders. A GTC order will remain active until you decide to cancel it. Broker will typically limit the maximum time you can keep an order active to 90 days.

7) COVER ORER – A cover order is a market order that is placed along with a stop-loss order. In a cover order the buy/sell order is always a market order that is accompanied with a compulsory stop-loss order in a specified range as pre-defined by the system which cannot be canceled. As there is compulsory stop-loss order the risk automatically reduces due to which the margin requirement also automatically reduced thereby giving more leverage to the client for intra-day trading.

8) BRACKET ORDER – A bracket order is an advanced intraday order that is accompanied by a compulsory target and stop-loss order. In simple words, this resembles a bracket which help traders automate their trades. A BO offers high leverage and is available in Equity Cash, Equity F&O, Commodity F&O and Currency F&O segments. It is type of order where you can enter into a new position along with a target/exit and a stop-loss order.

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