As we head into the era of 5G we look back to when trading used to be done by placing different types of orders to buy or sell a security by going to the brokers physically or placing a call that he may not have picked up. This was before the internet came to India and owning a landline and mobile was considered a privilege. As using the internet became accessible to everyone the way of trading changed and now investors can just place their orders by phone calls, SMS, WhatsApp, etc., or through their own by using the Shree Varahi app available for desktop and mobile.
In the modern world where orders can be placed with just a click of a button, for that, you need to have a Demat Account. If you don’t have an account open with us at Venus Tradex and start trading.
What is an order?
An order is an instruction given by an investor to their broker or broking platform to buy or sell stock on their behalf. Orders are used to buy or sell many different securities like stocks, currencies, commodities, etc., and are done through the bid / ask process.
When you place an orders with us on the Shree Varahi you get the following types of orders to choose from the drop box.
- NORMAL ORDER
It is the order that is placed in the live market time i.e., between 9:15 am – 3:30 pm, and at the price in the market during that time. It is based on the fact that you want to buy/sell a share at the exact time and not after and do not have control over the price at which the order may be placed. You can also place the buy order by the keyboard shortcut F1 or ‘+’ sign and the sell order by pressing the F2 or ‘–’ sign.
- LIMIT ORDER
In the limit order, the price to buy or sell a share can be fixed by the investor, and when that level is reached the share will be sold or bought. The order will be executed only when it reaches the limit price.
E.g.– Let us suppose the share of a company X that you want to buy is ₹ 1,000. A limit is set that when the price reaches ₹ 800 you will buy ten shares. Similarly in the case of selling the shares.
- STOP LOSS ORDER
A stop-loss order is set to safeguard an investor from heavy losses. The stop loss price which you have set is the trigger price and when that level is reached your position will be squared off.
E.g., if you have bought shares of company X at the price of ₹500 and have set the stop loss order at ₹490 when the price of the stock reaches that specified price the broker will sell the shares which will result in minimum losses.
- STOP LOSS MARKET ORDER
This order is a combination of a stop-loss order and a market order. Here when the price level that has been set is triggered it will be treated as a market order and will be sold at the price in the live market.
- AFTER MARKET ORDER (AMO)
As the name suggests this order can be placed after the post-closing session and before the pre-open session (4:00 PM – 9:00 AM). The price of the share is decided by NSE based on the closing price. For making an AMO you don’t need the live market but can do it when the markets are closed.
The shortcut on the keyboard in Shree Varahi for Offline Buy Orders is ALT+F1 and for Offline Sell Orders is ALT+F2.
- SIP BUY ORDER ENTRY
This order is placed automatically at 2:30 PM on the day. In this type of order, you can define the amount you want to spend daily/ weekly, or monthly and the stock of the company you want to buy. You can also define the number of stocks you need to buy and the amount you are willing to spend.
The keyboard shortcut in Shree Varahi for SIP orders is SHIFT+F1
E.g. – A limit of ₹ 2,000 is set to be spent weekly for 2 months (the start date is also specified by you) on the share of company Y and the price of the shares is ₹ 1,800. The stock will be purchased automatically every week for 2 months or until the share price is ₹ 2,000.
- GOOD TILL TRIGGER
A Good till Trigger order is where trading is not required daily or regularly. You can set the limit and when the stock has reached the limit it will be bought/ sold. This is not for intraday trading but they have a carry-forward policy.
E.g. – If the investor wants to buy a stock of a company at ₹ 100 and the market price is ₹ 150 then he can set a GTT order that when the price is on that level whether it takes any amount of time the stock will be bought at that time.
You can also specify the time limit for which you want to wait.
- MULTI-LEG ORDER ENTRY
In this order, the investors can buy/sell various futures and options at the same time and without the need for separate orders that have to be placed normally. This type of order helps to save the time of the traders.
- CASH N CARRY
In this, while placing the order to buy a share of a company you need to have the full amount in your account. Eg – Suppose you want to buy a share and it is priced at ₹1000 and you want to buy 10 shares then you need to have ₹ 10,000 in your account.
- COVER ORDER
It is the combination of buy and stop-loss orders for intraday trading. It helps to minimize the loss of the trader. Once the market order to buy a share is done the stop-loss order is automatically activated.
- INTRADAY ORDER
As the name suggests this order is placed for a day and needs to be squared off at the end of the market hours on the trading day i.e., before 3:15 PM.
- BRACKET ORDER
The bracket order is 3 orders rolled into one. It has the characteristics of a buy order, target order, and stop loss order. Bracket Orders typically will have a period restricted to intraday and may not be accessible for longer time frames. Only a few stock brokers offer this order type to their clients.
IN CLOSING
In this world of modernization where you can trade in the stock market on your own here are some of the types of orders which can be placed in the market. As an investor, you need to know about these types of orders as it will help you to maximize profits. If you know about the orders with their features it will help you select the order type for a particular share of a company whether you want the stock for the long term or make a profit from it in the short term. These orders are both for keeping securities long-term as well as short-term.
Contact us at Venus Tradex if you have a confusion regarding the type of order that will be the most beneficial for you. Have cheerful and successful trading.
What is day order validity?
It is the order which is valid for the day only and if it is not squared off during the trading day it will get canceled automatically by the end of the trading day.
What is a basket order?
A group of securities when bought and sold simultaneously is a Basket order. Here you can place multiple orders at the same time. After putting in the order you can also export it in excel format.
Do limit orders expire?
The orders which are placed at the day limit expire at the end of the trading session.
When are the AMO orders placed at Shree Varahi?
You can place orders in the Equity and F&O market after 4 PM; in the Currency market after 5 PM and in the MCX market after 11:30 PM. These orders are placed before 9 AM.