Types of Orders in Stock Market in India

Understand 3 Stock Order Types in Stock Market – Limit Order, Market Order and Stop Loss Order.

Understand 3 Types of Orders in Stock Market in India – Limit Order, Market Order and Stop Loss Order.

Stock Order Types – Limit Order, Market Order, Stop Loss Order

1. Limit Order

In this type of order, the investor instructs the broker to buy or sell shares with a limit price.

Example – The quote of Reliance Industries (RELIANCE) is Rs. 2,700. You place a buy order for RELIANCE with a limit price of Rs. 2,500. In this case, the current price is greater than your limit price. Therefore, your order will remain pending until the price falls to Rs. 2,500. As soon as the price falls to Rs. 2,500 or below, your order will get executed.

You can get an execution of your order below your limit price but in no case will it exceed the limit buy price.

Same is the case with limit sell orders. In no case the execution price will be below the limit sell price.

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• What is Buying Limit in Share Trading?

2. Market Order (Most Popular Types of Orders in Stock Market in India)

A market order is a Stock Order Type to buy shares at the current market price. There is no condition.

Example – The price of Reliance Industries is Rs. 2,700 and you place a market order. Your order will get executed at the current market price which can be above or below Rs. 2,700.

Remember that in a market order the execution price could be different from the last quote that you saw.

Also Read:

• What is Margin Trading in Share Market?
• When to Buy or Sell Stocks
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3. Stop Loss Order

This is a Type of Order in Stock Market in India that gets activated only when the last traded price (LTP) of the share is reached or crosses a threshold price called as the trigger price.

You have to place a stop loss order at a point below the current market price. If the stock falls to this price point, the stop loss order gets executed. If the stock remains unchanged or rises, the stop loss order remains as it is and does not get executed.

Also Read:

• What is Short in Share Trading?
• Right Time to Buy Stocks

FAQs: Types Of Order In The Stock Market

Conclusion

I hope now you have learnt all about Different Types of Orders in Stock Market in India. In case of any doubt or question, please Feel Free to Ask in the Comment Section Below.

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Also Read:

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• How to Pick Best Stocks to Buy in India
• Securities Lending in Share Trading
• What is Demat Account?
• TSMC India
• What Is Dematerialization in Share Trading?
• Stock Market Terminology for Beginners
• What is Rolling Settlement Cycle in Stock Market?
• Top 10 Companies in India by Market Cap
• What is Investment?
• Badla Financing in Share Trading
• Fundamental Analysis of a Company
• Best Investment Options for High Return
• What is Equity Investment?
• Circuit Filters and Trading Bands in Stock Market
• Top 10 Best Textile Stocks to Buy in India