Define market order|What is a market order?
A market order is a buys or sells agreement of an intraday trader to exchange through the broker that immediately executes a trade at the current market price.
Explanation:-
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In a market order, only share quantities are allowed to fill up and the price section selects the best price of market trading
hours price.
Importance of market order.
Stock price moves up-down and sometimes it moves by large price and vice versa.
Fortunately, the traders have another option to sell or buy which is a market order.
It immediately trades share at market trading hours. So, it is the defaults order.
The new trader does not use market orders because you are not sure at which price transect, it will be quite dangerous to the trader.
Define limit order|what is a limit order?
A limit order is the instruction of investors or traders to exchange through a broker to buy or sell a stock, bond at a specific price of the financial market.
Explanation
In the 2nd image, we observed that the price section is allowed to fill the desirable price of securities.
The limit price is always lower than the market price so a small trader can not manipulate the share or bond price.
It provides greater control to the investors.
By using a limit order traders buy securities at a low price and sell (square off) at a higher price.
This order is only executed when the price hit the limit order whatever sell or buy limit order.
Assume you want to buy one SBI share at 198 rs. The market price of a share is 200 Rs. Use limit order and fill 198 and the order goes to the broker. Fortunately, the price does not reach 198 the order, not transect.
Stop-loss order?
A Stop-loss order is an order or instruction to the broker to stop losses by order complete at the stop-loss price.
Explanation:-
Understand by an example ;
You think that it will go up, so you buy one SBI share at 198 Rs, but it goes down.
Your maximum loss is 10 Rs therefore use a stop-loss order which sells one SBI share at 188 Rs.
In the Angel Broking trading account, you set a buy or sell order along with a stop-loss order. Angel Spark is a lite version of Angel Broking. So facilities reduce.
You have to take a share position and then click on it. Select the square off option and simply put the stop-loss price.
The order is visible in the pending order.
Stop loss trigger?
Stop-loss order is passive order, it will activate when stop-loss price reach. Untile it hides in the background. To activate we have to use a stop-loss trigger price that is near price value to stop loss.
Understand by the previous case; the stop-loss order is 188, its hides in the background. Use trigger price 188.10 Rs which is a bit greater than SL order.
Beginners try all orders with one share.
You start trading with small money approx 3000 Rs. After 3 months you realise the conditions and depth of the market.
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