Different types of orders in Trading Stocks

Day order

An order which is valid for the day on which it is entered. If the order is not matched during the day, during the day, it gets cancelled automatically at the end of the trading day.

Immediate or Cancel (IOC) order

It allows a member to buy or sell a security as soon as the order is released in the trading system, failing which the order is removed from the system. A partial match is possible for the order, and the unmatched portion of the order is cancelled immediately.

Limit Price Order

An order that allows the price to be specified while entering the order into the system.

Market Price Order

An order to buy or sell securities at the best price available at the time of entering the order in the system.

Stop Loss (SL) Order

It allows the member to place an order which gets activated only when the market price of the security reaches a predefined price. A sell order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or falls below the trigger price of the order. A buy order in the Stop Loss book gets triggered when the last traded price in the normal market reaches or exceeds
the trigger price of the order.

Disclosed Quantity (DQ) order

An order which allows the member to disclose only a part of the order quantity to the market. For example, an order of 1000 with a disclosed quantity condition of 200 will mean that only 200 quantity will be displayed to the market at a time. Once this order gets executed, another order of 200 quantity is automatically released and so on till the full order is executed.

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Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"
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