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Methods of buying and selling of shares

Posted by NIFM
Market Orders : When you put buy or sell price at market rate then the price get executed at the current rate in the market. The market order gets immediately executed at the current available price. In market order there is no need to mention the price, the transaction will get executed at the best current available price.   Limit Order : It’s totally different from market order. In this the buying or selling price has to be mentioned and when the share price comes to that price your order will get executed at the price mentioned by you. But here it’s not sure that the price will come to your limit order. In day trading it’s risky because you havbe to square off all your positions before 3:30 PM and if in case the price doesn’t reach to your order, your order will be open and then you have to go through heavy penalties.   Stop Loss Trigger Price : Stop loss and trigger price are used to reduce the losses. This is a very important term especially if you are day trader (intraday). Stop loss as the name indicates, is used to reduce the losses. You can use a pivot calculator for simple stop loss calculation for delivery based trading and intraday stop loss depends on how much you are ready to lose, it also depends on the price movements of the scrip for that particular day.

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