What Are different order Types

Hello everyone,

This is Yashodhan from EMS Stock Market trading Institute in Pune .

Today we will discuss about various Order Types. Basically, there are total 4 types of order.

Market Order.
Limit Order.
SL Limit.
SL Market.
Let’s start with one by one.

Market Order.

Stock market how to use market order

If you want to place order at current market price, then you have to place Market Order. (E.g., If CMP of ABC Pvt. Ltd is Rs 200. And I’m willing to buy or sell that stock at the same price without doing any bargaining, then I will simply place Market order. And stock will get credited to my account.)

Limit Order.

Share market how to use limit order
Whenever you want a stock at a particular price, you can place Limit order. Basically, here you get a Bargaining benefit.
E.g., Share price of ABC Pvt. Ltd is 100, and I’m willing to buy that share @ Rs 95. In this case, I can place Limit order. Whenever the share price of ABC Pvt. Ltd will reach @ Rs 95, my order will get executed.

(While Buying share you can’t enter the price which is more than CMP and vice versa while selling)

SL Limit.

What is the significance of stop loss in the stock market trading?

This order is made for stopping your losses. Think that you are bullish about market but trend goes against your thinking. In this case, your position will start showing you losses. To prevent these losses, we can place sell order of SL Limit.

In Stop Loss Limit order, there are 2 prices. 1) Trigger price and 2) Price. This is nothing but a range. And your share will get sold between these 2 prices.

E.g., Rs 100 is your buying price and your loss-making capacity is Rs 5. i.e., SL will be Rs 95. Here your trigger price will be 96 and price will be 95. And if unfortunately, price moves against your trend, price will come down and down. As soon as price reaches at 96 your order will get activated and will get sold between the price range of 96 to 95.
SL Market.

What is the importance of stop loss market in the share market ?

There is another method for stopping your losses which is SL Market. Unlike SL Limit, here you are requiring to mention only one Trigger price. And once the price hits your Trigger price, your order will get executed at the best market price.

E.g., Rs 100 is your buying price and your loss-making capacity is Rs 5. i.e., SL will be Rs 95. Here your trigger price will be 95. And if unfortunately, price moves against your trend, price will come down and down. As soon as price reaches at 95 your order will get activated and will get sold at the best market price. (Not exactly at Rs 95, it could be Rs 95 or 94.90 or 95.10)

So, these were the four important types of order.in the share market

If you want to learn it Practically, you can enroll for our Basics to Advance Single Super Course.in ems stock market institute in Pune

In this, you will learn Intraday, Delivery, Equity, Futures and Options, Currency, Commodity etc.