What are the types of orders?

What are the types of orders?

An order is placed when the buyer and seller have the matching criteria in buying and selling stocks.  There are different kinds of orders that can be placed on trading exchanges for stocks and commodities. futures contracts. In other words, the trade order will be executed when the buy price of the buyer matches the selling price of a seller. 

The different kinds of orders are-

Market order

A market order is an order to buy or sell a stock at the best available price. It is the most simple and frequently placed order. 

Examples-

Log into the Swastika trading app, on mobile or web or call Swastika to buy or sell shares of a particular stock. The order will be executed immediately.  The price paid depends on the trading price of the stock bought while placing the order. 

Stop limit

A stop-loss order helps to limit a trader’s loss with the most control if the market moves in the opposite direction of the trader. Stop order help in minimizing losses.

Examples-

Buy stop order

You wish to buy Bharti Airtel Limited stock that is currently trading at ₹309 a share. If you believe the price will continue to rise, you still desire to purchase it, you can set a stop order at a particular price, say  ₹350 for instance. If it increases to ₹350 a share, and you place a buy stop order with a stop price of ₹350.

Sell stop order

You own Bharti Airtel Limited stock that is currently trading at ₹309  a share. You'll sell if its price falls ₹250 or lower. You can place a sell stop order with a stop price of ₹250. Once the stock drops to ₹250 or lower, your stock will be sold at the current market price. 


Limit order 

A limit order is an order to trade a specific set of stocks at the limit price or better.  This means if you set a price to buy, you will never buy gold at a price higher than you have set a limit for. If you sell gold, you will never sell gold below your set selling price limit.

Examples-

Buy limit order

You want to buy the shares of Tata Chemicals, which is trading at ₹600 a share. You'll buy if it drops to ₹550, so you place a buy limit order with a limit price of ₹550. The order will only execute at or below your ₹550 limit.

Sell limit order

You own tata chemicals stock which is trading at ₹550 a share. You'll sell if the price rises to ₹580, so you place a sell limit order with a limit price of ₹580. The order will only execute at or above your ₹580 limit.




    • Related Articles

    • What orders can be placed in a pre-order and post-order session?

      1) Market orders- These orders don’t have a specified price while buying or selling. These are executed as per the availing market rates. 2) Limit orders- these orders have specified a market rate i.e the price and the quantity and hence they get ...
    • What is Cover order?

      A Cover Order is intraday order which is followed by a mandatory Stop Loss Order. Hence, two orders can be placed at one time. This helps traders minimize their losses by protecting themselves from unexpected market fluctuations. A Cover Order can be ...
    • What is the difference between cover order and bracket order?

      Cover order is an order type where you place a stop loss along with the initial order is compulsory. Hence, the loss in the trade is already covered.  Cover order helps to limit your losses, reduces the risk and hence offers much higher intraday ...
    • How can I place an order through Swastika?

      Trading can only be done offline if you place your order to a broker who then buys or sells the shares for you. You can place buy and sell orders by calling us on 0120-4400777 Call and Trade service is available during the equity and commodity market ...
    • What is Bracket order?

      Bracket order is a special type of order where you can enter a new position on intraday orders with extra exposure along with the protection through target exit and a stop loss order.  It helps to limit your stock and lock in the profit. Through BO, ...