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Types of orders in stock market (HINDI) || Market Order, Limit Order, Stop Loss Order - YouTube
Channel: smallcase
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and you get confused.
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For example, if you want to buy
or sell a stock,
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you will see several order types
present there.
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Like Market order, Limit order,
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Day order, or
Immediate or Cancel order(IOC).
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You may get confused by seeing them,
that what are they.
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Today in this video, we will tell you
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what are the different types of order
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and what they exactly mean.
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So that whenever you place an order,
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you will know what type of order
you are placing and at what time.
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Whenever you place an order,
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you are asking your broker to give a
particular instruction on stock exchange.
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And whenever the instruction
gets fulfilled,
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your order is placed
in the stock exchange.
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Basically, you can place an order
on two places.
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One, NSE, which is National Stock Exchange
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and the second is BSE,
which is Bombay Stock Exchange.
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If you choose any stock
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and if it is listed on both, BSE and NSE,
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you can choose where to buy it.
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Now, we will talk about two major orders
in the market.
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First is market order and
the second one is limit order.
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Market order means if the current price
of a stock is Rs. 100 or RS. 105,
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then you are placing a buy order
at the same price.
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So, that price may change.
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It can go down from 105 to 102
or go up to 108 as well.
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Here, you cannot change the price.
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If you are placing an order at 105,
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you may get that stock at 107, or at 102.
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Its one advantage is
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that the chances of your order
being fulfilled is high.
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But one disadvantage is
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that whatever the current market price is,
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either high or low,
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your stock order will be
fulfilled at that price.
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Suppose you are placing an order
for 10 stocks at RS. 200 each.
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If you have placed order
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and price of that share price fluctuates,
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it goes to Rs. 208 from Rs.200,
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in market order, your order will get
executed at Rs. 208 and not at Rs. 200.
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But its advantage is that the chances of
your order being fulfilled will be high.
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Now, let's talk about Limit order.
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Limit order means
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you can execute the order
at your desired price.
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It means, if the current
price of a share is Rs. 500,
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you can place an order to buy it at
Rs. 480, or at Rs. 490.
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But your order will be executed only when
that price will reach Rs. 490 or RS. 480.
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If the price doesn't reach there,
your order won鈥檛 go to the market.
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Let's assume that you want to
place an order for 100 shares
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and current price for
each share is Rs. 150.
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But you want to buy that share at Rs. 140.
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And you placed buy order for 200 shares
at RS. 140.
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So unless the share price reaches 140,
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your order will not get
executed in the market.
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But once the price reaches 140,
your order will get executed.
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This is one of its advantages
and also its disadvantage.
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You can enter your desired price.
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But if your desired price never comes,
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your order will not get executed.
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It may reach 142 or 141 from 150,
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but you have placed order for 140.
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So unless it reaches 140,
your order will not get executed.
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Generally, it is used in the market
by traders
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when they know
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at what price they want to buy
and sell the share.
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We just told you about
market order and limit order.
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There is an another order type
which is Stop order.
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Many people also call it Stop loss order.
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As you can understand by the name,
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Stop loss order means,
you want to stop your loss.
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If you have placed a buy order at Rs. 100
and you expect it to increase further.
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But sometimes, the market can
move against your expectations.
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Market may move down instead of moving up.
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So, to protect your loss, you
can place a stop loss order.
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Suppose, you placed
a stop loss order at Rs. 95,
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means you are predicting that you are
ready to take Rs. 5 loss per stock.
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If you have placed order at Rs.95,
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whenever market price reaches Rs. 95,
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your order gets executed.
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And in this case,
your loss cannot be more than Rs. 5.
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There are two types of stop order,
stop loss market and stop loss limit.
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Stop loss market means, if the current
market price of a share is Rs. 100
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and you have placed a stop loss order
at 95.
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So, in stop loss market, your order will
be triggered and get executed at Rs. 95.
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For this reason,
most people prefer stop loss limit order.
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Here, you set your trigger price at Rs. 95.
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And you set your limit price
just below it.
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If your trigger price is Rs. 95,
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then you set your limit price
at 94.6 or 94.8.
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It means, your order in the market
is triggered at 95.
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But to execute, it should reach 94.6 or
94.8, whichever you have set.
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So, there is one issue with the stop order
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that if market falls drastically
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and if you have placed a stop loss order,
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your stop loss order
may not get executed at all.
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Your stop loss order is open in the
market, but it may not get executed.
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For example, in this case,
you have placed order for 95
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and suddenly the price falls down
to 85, 88 or 90.
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Your order may not get executed, your order
may still remain open in the market.
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Now, let鈥檚 talk about
other types of orders.
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The first one is Cover order.
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Cover order means, you can enter your buy
price and stop loss at the same time.
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It is not like,
first you place a buy order
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then return to place the stop loss order.
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The advantage of cover order is,
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if the current price is Rs. 100,
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enter your limit price there,
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and there itself,
you get the stop loss option.
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For example, you entered stop loss of 95
and placed the order at the same time.
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Here, the advantage is,
you don't have to place two orders.
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You can place an order in one go.
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Next is Bracket order.
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Bracket order means
Cover order plus Target price.
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There are three components
in a Bracket order.
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Your Buy price, Target price,
and Stop Loss.
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Suppose Buy price is Rs. 100,
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and your Target is Rs. 110,
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and Stop Loss is Rs. 95.
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Suppose your target of 110 is hit
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your stop loss order will
automatically get cancelled.
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Now, if you have bought it at Rs. 100,
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and it hits 95,
your stop loss order will be triggered
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and at the same time your target order of
Rs. 110 will get cancelled.
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Some people also call it OCO,
which is One Cancels Other.
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This is what Bracket order is.
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Basically, the difference between
bracket order and cover order is
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the bracket order is an advancement
of the cover order.
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Market timing is 9:15 a.m. to 3:30 p.m.
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But some of you may not be available
at this time to place an order.
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Or when you come back home from work
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you want to do some research
before placing an order.
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For this, you have an option of AMO,
which is After Market Order.
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If you cannot place an order between
9:15 a.m. to 3:30 p.m
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you can place your order
after market hours.
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After market means you can place it at
4:00 p.m, you can place it at 8:00 a.m.
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But you have to check it with your broker
because every broker has different timing.
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For example, if you place an order
at 4:00 p.m.
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your order will get executed
on the next market day.
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It will get executed at 9:00 a.m. or
9:15 a.m. depending on the broker.
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Your order will be executed
at the price of the next day morning.
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Suppose you have placed an order
at 4:00 p.m.
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whose current price is Rs. 100 per share,
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and the market opens at Rs. 104
on next day morning,
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then your order will get executed
not at Rs. 100 but at Rs. 104.
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Whenever you are placing an order ,
you can place it by two methods.
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First is by taking delivery
and second one is intraday.
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Delivery means if you are placing
a buy order for a stock,
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and you want its delivery, which means you
want all the shares in your Demat account.
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It is called delivery.
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The other is intraday.
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Intraday means if you are placing
an order in the morning,
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you have to exit it before the evening.
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Delivery is preferred by investors
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and intraday is preferred by traders,
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that they placed an order in the morning
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and sold it before the market closes.
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Whenever you choose intraday
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you don't get delivery of the stock.
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You bought it in the morning
and sold in the evening.
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Different brokers use different terms
for them.
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At some places you will see MIS,
which means intraday.
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Or at some places you can see CNC,
which means delivery.
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By now, we have covered
all the majority of orders.
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But, if you are placing an order,
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it also has two options.
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One is day order
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and the other is Immediate Or Cancel
order, which is also called as IOC.
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You can get the meaning of Immediate
Or Cancel order by its name.
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Either it will get executed immediately,
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or it will get cancelled
if didn't get executed.
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Suppose , you have placed an order
for 100 shares
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and out of that,
only 50 shares got executed.
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Then the order for remaining 50
will automatically get cancelled.
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Then, second is day order.
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Day order means,
you placed an order at 10:30 a.m.
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and it doesn't get executed immediately.
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Your order will remain open in the
market till it touches your price.
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Here also, you get two options.
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First one is Good For Day.
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Good For Day means
your order will be valid till 3:30 p.m.
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If it get executed at any point
till 3:30 p.m., then alright.
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By any chance, if your order
doesn't get executed by 3.30 p.m.,
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then your order will get
cancelled at 3:30 pm.
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Next is Good Till Day order.
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In good till day, suppose you placed
an order on Monday at 11.00 am
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and you kept the validity
of that order till Friday.
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If your order doesn't get
executed till Friday
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then it will get cancelled.
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So your order will remain open from
Monday to Friday till your price arrives.
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If you observe each broker,
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it is presented in different ways.
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For bracket order, you will see BO.
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For cover order, you will see CO.
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Or if you are placing a cash order,
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you may see CNC in some places
or you may see Delivery in another.
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It depends on the broker
where you have registered
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and what are the terms being used
on their platform.
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These were the different types of order
in the stock market.
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But if you want to learn about
stock market basics, like CAGR,
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or what is Trading and Demat account,
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or different market participants,
like stock exchanges,
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or what are depositories,
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you can visit our YouTube channel
where you will find all these videos.
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If you find this video interesting,
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please like this video
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and subscribe to our YouTube channel.
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Happy investing!
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