Basics of Stocks Order Placement
E.g. ONGC use CNC (cash and carry order)
1. Buy 1 share : Place market order
2. Buy 1 share : Place Limit order. Put limit below current Market price
3. Buy 1 share : Place SL-M order. Trigger above CMP.
Once you buy 3 shares then Next step.
1. Sell 1 share : Market order
2. Sell 1 share : Limit order. Put limit above CMP
3. Sell 1 share : SL-M order. Put trigger below CMP.
Unless you do it yourself, intellectual gymnastics is useless.
You may lose Rs 100-200 but consider it as fees to the market.
How to place various orders
1.Regular – routine order
2. BO – Bracket order(you can input entry, stop loss and targetin the same order so need not monitor once order is placed), stop loss and target are to be placed in points difference from entry and not the actual price.
e.g. You want to buy stock @ 100 with stop 98 and target of 105…
You have to place…
Entry – 100
Stop loss – 2
Target – 5.
3. CO – Cover order : Here you can place entry and stop loss in single order.
4. AMO – After market order: You can place this order when markets are closed and your order will go to exchanges once market opens @ 9.15am the next day
5. Day – order will remain valid for day.
6. IOC – Immediate or cancel.
Here once stock reaches to Ur limit price if u do not get full order fill remaining order is cancelled.
e.g. if u want to buy RIL 1lacquantity @ 1230…and at 1230, if only 20000 sellers are available….then your remaining 80000quantity order will be cancelled.
7. MIS – Trade is taken for intraday, broker will square off the open position after 3.15pm(Brokers may charge extra if broker squares off the MIS order) but if we square off the MIS position before the deadline, then no additional charges are applied.
8. Normal(CNC- CASH N CARRY)– Order placed with intention to carry the trade forward over next day. Limit order can be…Intraday/Positional/Cover order/Bracket order