Module 1 Introduction to Stock Markets

Chapter 9

The Trading Terminal



9.1 – Overview

When a market participant wants to transact in the market, he can do so by opting one of the options:

  1. Call the stock broker, and trade usually called “Call & Trade”
  2. Use a web browser to access the markets
  3. Use the trading software called the Trading Terminal

Each of the above method is a gateway to the exchanges. The gateway allows you to do multiple things such as transacting in shares, tracking your Profit & Loss, tracking market movements, following news, managing your funds, viewing stock charts, accessing trading tools etc. The purpose of this chapter is to familiarize you with the trading terminal (TT), and its interface.

A trading terminal is software which can be downloaded from your broker’s website and is installed on your computer. The trading terminal is quite a user friendly interface, as most of its functionalities are menu driven. To access the trading terminal, you need to have a trading account with your broker.

A good TT offers you numerous useful features. We will start by understanding a few basic features. To keep this chapter as practical as possible let us set two basic tasks to using the TT.

  1. Buy 1 share of ITC, and
  2. Track the price of Infosys

While we achieve the above two tasks, we will also learn about all the relevant concepts. For the purpose of this chapter, we will be using Zerodha’s web platform ‘Kite

9.2 – The login process

The trading terminal is quite sensitive as it contains all your trading account information. In order to ensure adequate security, brokers usually follow a stringent login process. The process involves entering your password and answering two secret questions, the answers to which only you know. The snapshot below shows this process.


9.3 – The Market watch

Once your login to the platform you will have to populate the ‘market watch’ with the stocks you are interested. Think about the market watch as a blank slate. Once the stock is loaded on the market watch you can easily transact and query information about it. A blank market watch looks like this (this is also the screen that you see once you log in)

Keeping the first task in mind we will load ITC Ltd onto the market watch. To do this we simply have to type in the stock symbol ITC in the search bar and the drop down will show the stock in different exchanges(NSE/BSE)

Click on the Add symbol to add the stock to the marketwatch

The marketwatch will display last traded price, percentage change of the stock

  • The last traded price of the stock (LTP) – This gives us a sense of how much the stock is trading at the very moment
  • Percentage change – This indicates the percentage points the LTP is varying with respect to the previous day close

Some basic information that will be needed at this point would be:

  • Previous day close – At what price did the stock close the previous day
  • OHLC – Open, High, Low and Close gives us a sense of the range within which the stock is trading during the day
  • Volumes – Gives a sense on how many shares are being traded at a particular point of time

You can find this information under Market Depth. If you hover over the stock name, you will find Buy, Sell, Market Depth and Stock Information. If you click on Marketdepth, you will find the above information along with the best bid and ask price ladder. We will be covering Bid and Ask price in the later part of the Chapter.

As you can see, the last traded price of ITC is Rs.262.25, it is trading -0.40% lower than the previous day close which is Rs.263.30. The open for the day was at Rs.265.90, the highest price and the lowest price at which the stock traded for the day was Rs.265.90 and Rs.262.15 respectively. The volume for the day is close to 27 lakh shares.

9.4 – Buying a stock through the trading terminal

Our goal is to buy 1 share of ITC. We now have ITC in our trading terminal, and we are convinced that buying ITC at Rs.261, which is roughly Rs.1.25 lesser than the last traded price is a great idea.

The first step for this process would be to invoke what is called a buy order form.

  • Hover over the stock you want to Buy and click on the Buy Icon(B)
  • This will invoke the Buy. When the buy order form is invoked, the following order form will appear on your screen.

The order form is pre populated with some information like the price and quantity. We need to modify this as per our requirement. Let us begin by the first drop down option on the top. By default, the exchange specified would be NSE.

The next entry is the ‘order type’. By clicking on the drop down menu you will see the following four options:

  • Limit
  • Market
  • SL
  • SL-Market

Let us understand what these options actually mean.

You can opt for a ‘Limit’ order when you are very particular about the price you want pay for a stock. In our case, the last traded price of ITC is Rs.262.25 but say we want to limit our buy price to Rs.261. In such a situation where we are particular about the price we want to transact in, we can opt for a limit order price. If the price does not fall to Rs.261, then you will not get the shares. This is one of the drawbacks of a limit order.

You can also opt for a market order when you intend to buy at market available prices instead of a very specific price that you have in mind. So if you were to place a market order, as long as there are sellers available, your order will go through and ITC will be bought in the vicinity of Rs.262.25. Suppose the price goes up to Rs.265 coinciding with your market order placement, then you will get ITC at Rs.265. This means when you place a market order, you will never be sure of the price at which you would transact, and this could be quite a dangerous situation if you are an active trader.

A stop loss order protects you from an adverse movement in the market after initiating a position. Suppose you buy ITC at Rs.262.25 with an expectation that ITC will hit Rs.275 in the near future. But instead, what if the price of ITC starts going down? We can protect ourselves firstly by defining what would be the worst possible loss you are willing to take. For instance, in the example let us assume you don’t want to take a loss beyond Rs.255

This means you have gone long on ITC at Rs.262.25 and the maximum loss you are willing to take on this trade is Rs.6 (255). If the stock price drops down to Rs.255, the stop loss order gets active and hits the exchange and you will be out of the loss making position. As long as the price is above 255 the stop loss order will be dormant.

A stop loss order is a passive order. In order to activate it, we need to enter a trigger price. A trigger price, usually above the stop loss price acts as a price threshold and only after crossing this price the stop loss order transitions from a passive order to an active order.

Going with the above example:

We are long at Rs.261. In case the trade goes bad we would want to get rid of the position at Rs.255, therefore 255 is the stop loss price. The trigger price is specified so that the stoploss order would transition from passive to active order. The trigger price has to be higher than the stop loss price. We can set this to Rs.256.  If the price drops to Rs.256 from 255 the stop loss order gets active.

Going back to the main buy order entry form, once the order type is selected we now move directly to the quantity. Remember the task is to buy 1 share of ITC; hence we enter 1 in the quantity box. We ignore the trigger price and disclosed quantity for now. The next thing to select would be the product type.

Select CNC for delivery trades. Meaning if your intention is to buy and hold the shares for multiple days/months/years then you need to ensure the shares reside in your demat account. Selecting CNC is your way of communicating this to your broker.

Select NRML or MIS if you want to trade intraday. MIS is a margin product; we will understand more on this when we take up the module on derivatives.

Once these details are filled in your order form, the order is good to hit the markets. The order gets transmitted to the exchange as soon as you press the submit button on the order form. A unique order ticket number is generated against your order.

Once the order is sent to the exchange it will not get executed unless the price hits Rs.261. As soon as the price drops to Rs.261 (and assuming there are sellers willing to sell 1 shares) you order gets through, and is eventually executed. As soon as your order is executed, you will own 1 shares of ITC.

9.5 – The order book and Trade book

The order book and trade book are two online registers within trading terminal. The order book keeps track of all the orders that you have sent to the exchange and the trade book tracks all the trades that you have transacted during the day.

The order book has all the details regarding your order. You can navigate to the orderbook by clicking the Orders tab

The order book provides the details of the orders you have placed. You should access the order book to:

  • Double check the order details – quantity, price, order type, product type
  • Modify the orders – For example if you want to modify the buy order from 332 to 333 you can do so from the order book
  • Check Status – After you have placed the order you can check the status of the same. The status would state open if the order is completed partially, it would state completed if the order has been completed, and it would state rejected if your order has been rejected. You can also see the details of the rejection in the order book.

If you notice, there is an open order to buy 1 share of ITC at Rs.261.

If you hover over the pending orders, you can find the option to modify or cancel the order

By clicking ‘modify’ the order form will be invoked and you can make the desired changes to the order.

Once the order has been processed and the trade has been executed, the trade details will be available in the trade book. You can find the trade book just below the orderbook

Here is a snapshot of the trade book

The trade book confirms that the user executed an order to buy 1 share of ITC at Rs 262.2. Also notice a unique exchange order number is generated for the trade.

So with this our first task is complete!

You now officially own 1 share of ITC. This share will reside in our DEMAT account till you decide to sell it.

The next task is to track the price of Infosys. The first step would be to add Infosys to the market watch. We can do this by searching for Infosys in the search box.

The trading symbol for Infosys is Infy. Once we select Infy, we press Add to add it to the market watch.

We can now track some live information about Infosys. The last trade price is Rs.1014.75; the stock is down -0.11% from its previous days close of Rs.1015.85. Infosys opened the day at Rs.1014.80 made a low of Rs.998.40 and a high of Rs.1028.95. The volumes were 3.6 million shares.

Please note, while the open price will be fixed at Rs. 1014.80 the high and low prices change as and when the price of Infosys changes. For example, if Infosys moves from Rs.1014.2 to Rs.1050, then the high price will reflect Rs. 1050 as the new high.

Notice that the LTP of Infosys is highlighted in green and ITC in red. If the current LTP is more than the previous LTP, the cell is highlighted in green else in red.

Have a look at the snapshot below:

The price of Infosys dropped from 1014.20 to 1020.80, and hence the colour changed to red from blue.

Besides the basic information about the LTP, OHLC, and volume we can also dig a bit deeper to understand the real time market participation. To see this, we need to invoke what is called a ‘Market Depth’ window also referred to as the snap quote window. As you can see, there is a lot of information in the snap quote window. I specifically want to draw your attention to the numbers in blue and red called the Bid and Ask prices.

You can use Kite by Zerodha more effectively by going through its user manual

9.6 – The Bid and Ask Price

If you want to buy a share, you obviously need to buy it from a seller. The seller will sell the shares at a price that he thinks is fair enough. The price that the sellers ask you is called the ‘Ask Price’. The ask price is highlighted in red. Let us analyze this in a bit more detail.

Sl No Ask Price Ask Quantity Number of Sellers
01 3294.80 2 2
02 3294.85 4 2
03 3295.00 8 2
04 3296.20 25 1
05 3296.25 5 1

By default the snap quote window displays the top 5 bid and asks prices. In the table above we have the top 5 ask prices.

The first ask price is Rs.3294.80. At this particular moment, this is the best price to buy Infosys and there are only 2 shares available at this price being offered by 2 different sellers (both of them are selling 1 share each). The next best price is Rs.3294.85. At this price there are 4 shares available being offered by 2 different sellers. The third best price is Rs.3295 at which 8 shares are available, and this price is offered by two sellers. So on and so forth.

As you notice, the higher the ask price the lower is the priority. For example, at 5th position is an ask price of Rs.3296.25 for 5 shares. This is because the stock exchanges give priority to sellers willing to sell their shares at the least possible price.

Notice even if you want to buy 10 shares at Rs.3294.8 you can only buy 2 shares because there are only 2 sellers at Rs.3294.8. However if you are not particular about the price (aka limit price) you can place a market order. When you place a market order at this stage, this is what happens:

  • 2 shares are bought @ Rs.3294.8
  • 4 shares are bought @ Rs.3294.85
  • 4 shares are bought @ Rs.3295.00

The 10 shares will be bought at three different prices. Also in the process the LTP of Infosys will jump to Rs.3295 from Rs.3294.8

If you want to sell a share, you obviously need to sell it to a buyer willing to buy it from you. The buyer will buy the shares at a price that he thinks is fair enough. The price that the buyer demands is called the ‘bid price’. The bid price is highlighted in blue. Let us analyze this part in a bit more detail:

Sl No Bid Price Bid Quantity Number of Buyers
01 3294.75 10 5
02 3294.20 6 1
03 3294.15 1 1
04 3293.85 6 1
05 3293.75 125 1

Again by default the snap quote window displays the top five bid prices. Notice the best price at which you can sell shares is at Rs.3294.75, and at this price you can only sell 10 shares as there are only 5 buyers willing to buy from you.

If you were to sell 20 Infosys shares at market price the following would be the execution pattern :

  • 10 shares sold @ Rs.3294.75
  • 6 shares sold @ Rs.3294.20
  • 1 share sold @ Rs.3294.15
  • 3 shares sold @ Rs.3293.85

So in essence, the bid and ask prices gives you information about the top 5 prices at which the buyers and sellers are stacked up. It is extremely important for you to understand how the buyers and sellers are placing their trades especially if you are an intraday trader.

9.7 – Conclusion

The trading terminal is your gateway to markets. Trading terminal has many features that are useful to traders. We will explore these features as we progress through the various learning modules. For now you should be in a position to understand how to set up a market watch, transact (buy and sell) in stocks, view the order and trade book, and understand the market depth window.

Key takeaways from this chapter

  1. A trading terminal is your gateway to markets. You must know the operations of a trading terminal if you aspire to become an active trader
  2. You can load the stock you are interested in on the market watch to track all the relevant information
  3. Some of the basic information on market watch is – LTP, % change, OHLC and volumes
  4. To buy a stock you need to invoke a buy order form by pressing ‘B’ key. Likewise, to sell a stock you need to invoke a sell order form by pressing ‘S’ key
  5. You choose a limit order type when you are keen on transacting at a particular price, else you can opt for a market order
  6. You choose CNC as product type if you want to buy and hold the stock across multiple days. If you want to trade intraday  you choose NRML or MIS
  7. An order book lets you track orders that are both open and completed. You can modify the open orders by clicking on the modify button at the bottom of the order book
  8. Once the order is completed you can view the trade details in the trade book. In case of a market order then you can view the exact trade price by accessing the trade book
  9. You can press the F6 key to invoke the market depth or snap quote window. The market watch enables you to see bid and ask prices
  10. The bid & ask prices refers to the price at which you can transact. By default the top 5 bid and ask prices are displayed in the market depth window at all times.


  1. Surya says:

    Suppose we decide the product type to be CNC while placing a bid and the trade gets executed. Can we sell the share during the same day if we want to?

  2. Tukka Guru says:

    Can you please expand the acronyms? What is CNC, MIS or NRML? Do other brokers also use these terms? I came to zerodha after using ICICIDIRECT and feel confused

    • Karthik Rangappa says:

      CNC = Cash and Carry. We use this order type when dealing with delivery trades.
      MIS = Margin order, used when the trader intends to do an intra day trade. Higher leverage is provided/
      NRML = Normal margin order, used when we want to carry forward a derivative trade
      BO = Bracket Order (Intra day order type), trader has to specify his target and stop loss price
      CO = Cover Order (Intra day order type), trader has to specify stop loss price

      All Intra day orders needs to be squared off by 3:20 PM.

      Almost all brokers provide these order types, however the naming convention may vary a bit. I’m sure you will get used to it soon 🙂

  3. Aravind says:

    When is the payment to be made? Is it after the trade or when I place the order?

  4. prakashbabu says:

    Do I need to provide topless and trigger price when I trade in MIS and is it important to square off my position afterwards

    • Hanan Delvi says:

      Whenever you trade in MIS, you get additional leverage than what is normally provided which means that your positions cannot be carried forward to the next day. It would be nice for you to have a stoploss and/or target to avoid missing out, but it’s not necessary because all MIS positions will be squared off end of day.

  5. prakashbabu says:

    Kindly tell how to place a stpploss and trigger price when I trade in SL-Limit and in SL-Market. What is IOC and Day seen when I see in buying or selling screen.

    • Hanan Delvi says:

      Check out this blog to learn how to place stop loss orders on Zerodha Trader.
      Check out this blog to learn how to place SL & Target at the same time as your entry order by way of bracket orders.

      If you choose IOC (Immediate or Cancel), your order will get executed immediately or cancelled. If you choose Day, it’s valid for the whole day.

  6. Notify follow-up comments and new posts by email because they are very much useful for me . Thank you. ChandraChoodan Nair.

  7. prakashbabu says:

    If suppose a stock is trading at 100 (in CNC). I want to buy at 95 . If I am trading in limit order, once stock reaches 95 , my limit order is executed. I think there is no question of putting a stpploss. After that in same way I want to sell the stock at 105 . Same way I am putting a limit buy order and as soon as it reaches 105 My limit sell order is executed. But now after that to be on safer side I have to place another SL-M order with trigger price of 100. My doubt is whether after buying at 105 with limit order I should place a SL-M order or simultaneously I can place a SL-M order when my limit buy order is not yet executed.

    • Hanan Delvi says:

      If your limit buy order is not yet executed, you can still place a SL-M order if you wish to. However, this would require you to maintain additional margin because you would have two open orders. You will need to pay only one side margin if you place your Target and SL-M orders after your Limit order has been executed.

  8. prakashbabu says:

    Pls clarify, if suppose a stock is trading @100(CNC). I place a limit order to buy @ 95 . If it touches 95 , well n good I get some shares in my dmat. account. After that I place a limit sell order for 115 . Also if it touches 115 only my limit sell order will get executed. I get shares at 115. If it doesn’t then I have to place another SL-M order to prevent any loss. Which I don’t want Or after [email protected] 95 I place SL-M order sell order with stpploss 90 . My question is if my limit buy order is executed @ 115 what is the need to place another SL-M order . Is it right that only after one order gets executed we should place another only if my limit sell order gets executed. I shall place any order. How to go about this procedure.

  9. prakashbabu says:

    In CNC mode if a stock is trading at 100 and want to buy @ 95 . If I place a limit order as soon as it reaches 95 my limit buy order gets executed. Else will it still survive or my limit buy order automatically gets cancelled.

    • Karthik Rangappa says:

      The limit order will stay valid till the end of the current market session. After market closes, the order is cancelled. You will have to place a fresh order the net day.

  10. prakashbabu says:

    Today in MIS I bought shares when it was trading @ 349.80 . I bought for 349.40 . Though I opted for SL-M. when I closed my position and saw in my order book it showed me limit order and trigger which I quoted as 342.50. What will happen for my trade.

    • Hanan Delvi says:

      Prakash, I don’t seem to understand your query accurately. I know that you entered the position at 349.40. Now is your SL-M order open or do you wish to place it? It seems to me you’ve entered and closed your position and you also have a SL-M order open.

  11. prakashbabu says:

    Today I bought 50 shares of REC Ltd @ 349.40 with trigger price 342.50 in MIS . REC today closed at 341 . Today my stpploss triggered . Since there was a powercut I couldn’t square off. . My question is should I need to square off as soon as my stpploss triggered . Even if I didn’t square off my position Since my Trigger price is 342.50 my loss would be upto that level. If I didn’t square off after my Stoploss triggers is there chance for me losing money beyond my Stpploss. Pls reply.

    • Hanan Delvi says:

      Well, there’s never a chance that you would lose much more than your SL price, unless you’ve put a SL-M order on an illiquid scrip.

      I think there’s a small misunderstanding on your part about how stop loss orders work. You do not need to place an order after your trigger has been hit. The trigger itself is the order because as soon as the trigger is hit the order is sent through to the exchange.

  12. prakashbabu says:

    Can I commence my trading as soon as I sell my shares in cnc mode or do I need to wait till my amount is updated

  13. prakashbabu says:

    When I am trading in CNC mode. When I place a SL-M order to buy a share. Do I need to change my Trigger price each day till it gets executed. If so how to do that. I am trading in Z5 html web version .please do mail me.

    • Hanan Delvi says:

      Zerodha trader doesn’t have an option to keep your orders open beyond the order placement day because of regulations. MCX exchange allows this by means of a GTC (good till cancel) or GTD (good till date) order. So in your specific case, you would need to place your SL-M order everyday till your price is hit.

      • rukmani says:

        Can someone plz explain GTC and GTC
        or share the link where its already explained….

        • Karthik Rangappa says:

          GTC is ‘Good till Canceled’ order type. Suppose the current market price of a stock is 100 and you want to buy it at 95, then you can place a limit order to buy it at 95, this order will stay in the system till it gets fulfilled or it gets cancelled.

  14. Ami Trivedi says:

    My question is about Bracket Order(BO).
    In BO stoploss is must as 1 point ( 1absolute) . Is it same for target? I mean target is also must be 1 point? If I want 0.50 paisa profit with 1 rs. Stoploss can I use btacket order?

  15. ANANT says:

    In this chapter discussed, SL-Market type of order is not sufficient elaborated. Will b thankful if u can please elaborate.

  16. ANANT says:

    In the SL type of order, suppose a stock is trading at 346.80 & I put a limit order for 346.60. In the same time, can I put it in SL for 343 with a TRIGER price of 344. And also can I put a limit sale order for 347.50 ? In intraday transactions, is the settlement done in same day ?

  17. ANANT says:

    In the above discussed query & reply segment, there are many time comes a term that is ‘target price’.
    Is this different from ‘trigger price’ as discussed in the chapter in stop loss order type ? Another term came,
    ‘illiquid scrip. What does this mean ?

    • Karthik Rangappa says:

      Target Price = This is the price at which you want to book profits. For example if you buy a stock at 100 with a hope to sell it at 110 and pocket Rs.10 as profits, the 110 is the target price

      Trigger Price = This is the price associated with stop loss, we will be talking about it shortly.

      Illiquid scrip = Stock counters where trading activity is very low is called illiquid scrip.

  18. ANANT says:

    Fine, thanks ! Karthik Sir.
    What does F & O mean ?

  19. kyan says:

    if i have placed a buy order of ‘x’ company @ RS.150 with MIS code and that gets executed successfully. But instead of square off in the same day before 3.20 i want to carry forward to next day. I heard that a separate buy order should be placed with CNC code ?! can you give a clarity answer on this? thanks in advance

  20. Ram says:

    In zerodha we need to remember the buying price of each equities, but in many other company tools shows the buying price and latest profit
    Why we don’t have that in NEST?

  21. Ram says:

    The “Admin Posistion” “F11” is present but the holding equity symbols or MOM values is not getting populated in my terminal.
    I have checked with some of my friends too they too said same thing. And many of the options in the terminal is either not user friendly or not working as expected. 🙁 .Please do needful.

    • Hanan Delvi says:

      You won’t be able to see your overnight Equity holdings on Admin positions – you have to use the Holdings option for this. To check holdings you can go to Surveillance > Holdings > View Holdings

      You can only see intraday positions and F&O on Admin positions.

      If you’d like to see the MTM values of your EQ symbols, the best place to do this is on Q as it shows you the buy price and the current closing price.

  22. RAHUL says:

    Hi Karthik, can we execute a Short trade online?
    (i) If yes then which kind of order (name/type) should we use?
    (ii) if not, then what is the method and the associated constraints?

    • Karthik Rangappa says:

      Of course you can execute a short trade online. All you need to do is press F2 on your trading terminal, it will invoke a sell order form. Fill up the quantity and price (for a limit order)….and press enter….you would have created a short position. Whenever you wish to buy back, press F1 (buy order form pops up) and you could square off your short position. Also, I would suggest you read this chapter about shorting –

  23. Priyanka says:

    I have two questions here-Why we use stop loss order when we know it will incur loss and not profit?what is the difference between stop loss order and stop order?

    • Karthik Rangappa says:

      Well, if you know the trade incurs a loss, why trade in the first place 🙂

      Remember there is nothing called as ‘certainty’ in markets. Whenever we place a trade there is a chance that it could result in a loss. In order to minimize the loss we need to place a stop loss.

      Also, both stop loss order and stop order are same.

  24. Priyanka says:

    thanks for feedback.I appreciate it.

  25. Ashish Arora says:

    Mr Karthik,
    appreciate your effort for retail investor education. I have question regarding volume.

    Volume shows Total number of shares Traded on a particular day (Long+Short positions). so Is there any way to know the number of Long positions and short positions separately during trading hours.

    • Karthik Rangappa says:

      In fact this is not possible. However we can only associate and arrive at few conclusions – a price increase with increase in volumes and a volume built up on long positions. Likewise a decline in price with increase in volume as volume built up on short positions.

  26. ashi valla says:

    suppose….last traded price is 25.00
    bid price&quantity ask price&quantity
    24.90(100) 24.95(100)
    24.85(100) 25.00(100)
    24.75(100) 25.10(100)
    24.50(100) 25.25(100)
    24.30(100) 25.50(100)
    ask price are the price asked by seller. The sellers will sell the share at a price which he thinks is fare.
    so suppose if i bought 1share at the rate 25.00 from some seller.and i want to earn 10paisa by selling that 1share at 25.10(neglect other charges).
    so what should i do? i have to wait till the 1st bid price turns to 25.10….?????????
    for the time sake we are not considering any technical analysis…. just focusing strictly on market depth chart or dialouge box……
    acc to the table there are 100shares selling at 25.10…..
    what happens when i click F2 and fill the selling form at 25.10 and at MIS??????????????
    will my one share be joining among the above table making,
    bid price&quantity ask price&quantity
    24.90(100) 24.95(100)
    24.85(100) 25.00(100)
    24.75(100) 25.10(101)
    24.50(100) 25.25(100)
    24.30(100) 25.50(100)

    • Karthik Rangappa says:

      Phew! that was a long msg 🙂

      Yes, when you want to buy you look at ask price and when you want to sell you look at bid price. When you buy at 25, you can sell at 25.1 provided there is someone willing to buy the same from you. In other words the bid price should turn 25.1. Alternatively you can submit the bid yourself by placing an order to sell at 25.1. Please note you can do this by placing a ‘Limit’ order.

      When you press F1 to buy, the order form pre-populates itsefl with the ask price…likewise when you press F2, the order form pre-populates itself with the sell price aka the bid price.

  27. ashi valla says:

    respected karthik sir,
    this is a suppose situation.
    i noticed the ask price of a share which is in red is increasing downwards…… vice versa
    i noticed the bid price of a share which is in blue is decreasing downward
    so suppose i bought a share at 50rs…. at that instant the bid price was 49 rs and the ask price was 50rs… so i bought 1share… now the LTP is 50rs r8????????
    so with all those TA i knew this day would be a bullish(very much) day…so the price are increasing at a high rate . after 1 hr the LTP rise to 60rs…..and im intrested in selling the stock….. so how am i going to get a price close to 60rs…. if the nature of bid price is decreasing downwards ……???????????????/
    at LPT 50rs i bought one………….when latest bid price is 49 . And ask price is 50
    nw LTP is 60rs….. so obviously the ask price too would have rose..and bid price will be again low……(dont consider buy strength sell weekness nw)….
    i understand ask price is increasing downward to give the best and least price when someone buy a share…..
    and bid price is decreasing downwards to give the best price below the LTP…..
    please anlayze my dobuts???????regarding that 50rs share……………………………………………….

    • Karthik Rangappa says:

      The Ask price is always higher than the bid price…this is a given. Also, Ask price goes in increasing as you traverse downwards…meaning the lowest price on top. So when you buy @ 50, and the market is trending top, so would the price at which people bid and ask…the whole expectations shifts upwards. So if you want to sell at 60 and there is a buyer available, certainly your order goes through.

  28. zahid says:

    please assist how i can keep updating my sl using my cell phone app and also can i change my sl once or twice a day

  29. zahid says:

    yes sir i m using mobile app to trade the question i had is eg i buy a stock at 5 rs and place sl at 3 rs now stock moves up to 10 rs and now i want to change by sl to 7 rs if this is possible using the app if yes please assist with the steps

  30. zahid says:

    and the mobile app needs lots of changes
    while i buy a particular i cnt see the current market value of the stock and sometimes it take to much time to execute a trade

    • Karthik Rangappa says:

      Thank you so much for sharing your feedback, we are working on developing a web platform (called Kite) which will take care of most of these issue.

  31. the_fool_on_the_hill says:

    I have several queries regarding placing my first ever option premium buying order.

    1. Validity is ‘Day’ or ‘Immediate or Cancel’. So how do I place pre-market, post-market or (what I really want) after-market orders?
    2. Product ‘NRML’ and ‘MIS’. Does it mean that if I choose ‘NRML’, my option premium is held as long as I do not square it off or till expiry of the premium? Also, does ‘MIS’ mean that my option premium is squared off (or sold, if I buy a call option) before the end of the day?
    3. Order type- ‘Limit’ is how one makes those bid and ask (bid in case of buying a call option) positions. ‘Market’ is I am forced to buy at the least ‘Ask’ rate. ‘Stoploss’ is when I can set a ‘trigger’ price for squaring off (how long is this trigger price held? Till the end of the day? Or till I square iff the position or till the expiry of the premium on the settlement date?) my buying ‘Price’. ‘Stoploss-market’ is when I can set a ‘trigger’ price for an option bought at market price — Is this right? Also, please answer my question about the duration for which the trigger price is valid. Also, can the trigger price of a call buy option be higher than the buying price?
    4. In the ‘Cover’ choice, as opposed to the ‘Normal’ choice, what do ‘trigger price range’, ‘percentage max’ and ‘trigger price’ mean?

    Really looking forward to your replies Karthik, so that I can place my first ever stock trading order. Without Zerodha Varsity, I would never have dared to enter the stock market. Thanks to you, I have opened a Zerodha account and look forward to trading. These four questions seem to be the final hurdle I need to cross before placing my first order.

  32. Adam says:

    Can I place a limit order with a market stoploss(and not a fixed stoploss)

  33. the_fool_on_the_hill says:

    When I buy or sell a stock or an option as part of a single order but at a staggered rate (that is at several successive ask and bid rates, if I place a market order), will Zerodha charge me for a brokerage only once, or will I be charged for a brokerage for each successful completion at a specific rate? Similarly, when I buy or sell a stock or an option as part of a single limit order and my order is executed at different points of time during the day depending on when the market rate reaches the limit rate, and thus ending up buying or selling at staggered intervals, will Zerodha charge me for brokerage only once considering it was a single order, or will I be charged for each successful completion of the order at the limit rate?

  34. Cris says:

    will there be always a buyer and a seller, for a particular stock?

  35. PR0135 says:

    I have some of question/doubts-
    1) When you try to buy a share (I’m using Pi software) and click on buying share one window gets open and then you have to put some details like Order type-Market,Exchange-NSE,Qty etc. I can see one more option as Validity and you have to choose one option out of two(DAY,IOC) … what does it mean?
    2) What is the difference between Order Type- SL and SL- Market?
    3) What is Bracket order,cover order?
    4) If I want to do Intra day on equity shares, what is the margin ? Is it proportional to cash present in trading account? Plzz give some info abt whole procedure and how it works 🙂
    Could you pls guide me as I’m new to this field.
    Thanks in advance 🙂

  36. Devanand. says:

    Please explain me about spread order. And also Where to use MIS?

  37. aehsan4004 says:

    can we have a seperate module dedicated to just PI ?
    it has tons of great features ,which newbies don’t even understand .
    we try to “GOOGLE” them , but some learning sources are too deep ,while others too shallow & majority outright misguiding (with a paid course offer & constant marketing spams ,attached with them )

    i really believe a module PI will help out PI users a lot & maybe reduce some unneccessary traffic to “CALL SUPPORT” as well .

  38. Prakhar says:

    My doubt is regarding intraday after looking at the market dept. Now, there are a few shares that oscillate within a range of 5 paisa, etc. This is almost everyday. In such case, most of the buyers know that least for the day is 0.4 and highest 0.5 or 0.6. In such case, how will the trade happen as everyone will place a buy order of 0.4 and sell order of 0.5. Please explain as I am highly confused over this. Similar is the case with other stocks which oscillate in a range of say 50 paisa.

    • Karthik Rangappa says:

      Minimum tick price is 5 paisa. So price movement will be in multiples of this. Not everyone will do this…if everyone does the same then there would be a circuit freeze. Same applicable for the 50 paisa stock.

  39. sunder says:

    Thank for ur kindness


    suppose i limit the price at 332 and the stock fall from 335 to 333 then 332.5, then 332.3 and then suddenly 331.3 then will my order get executed at 332?

    • Karthik Rangappa says:

      If there is an intraday gap (which is quite possible) then your order will not be executed and will be held pending in the system.

  41. T S Sreenivasan says:

    what is 52 weeks high and low in the snap quote of market watch on the mcx trading terminal

    • Karthik Rangappa says:

      The highest price at which the stock/commodity has traded over the last 52 weeks is 52 week high. Likewise the lowest price at which the stock has traded over the last 52 weeks represents the 52 week low.

  42. Sai Sreedhar says:

    Is Zerodha Pi free only for Account holders at Zerodha?

    • Karthik Rangappa says:

      Yup, both Pi & Kite is free for all Zerodha clients.

      • Sai Sreedhar says:

        Thanks for the quick response! I didn’t know about Zerodha earlier, until I read about the modules on one Quora topics.
        I really appreciate the modules which you have made available for starters like me, and admire the way they are laid out step by step. I am in module 3 right now and intrigued to learn more and more about the market and fundamentals which you have simplified so well! Thanks for the efforts you have taken!

  43. ashishchauhan says:

    Hi Karthik
    I am a beginner and have recently joined zerodha and came across this varsity. it is a great place to learn. you very well described how to buy a share.
    could you please explain the process of selling a share which i already own.?
    Thanks in advance.

    • Karthik Rangappa says:

      Well, its fairly simple. All you need to do is, on the market watch, highlight the script you want to sell and press F2. When you do this the order form opens up, enter the quantity you wish to sell and press summit. Thats it.

      I’d suggest you call the broker’s support line to get a better clarity on the procedure.

  44. Arun says:

    Many a times I have seen that there are a lot more shares on the sell side on the market depth window but still the share price is going upwards for the day. Why is it so? Isn’t it supposed to be the other way round as there are more sellers than buyers?

    • Karthik Rangappa says:

      When the price goes up, it does tend to attract more sellers as they get higher prices at which they can offload shares. Also remember, just because there are more sellers it does not mean the price will go down.

  45. Atul Sagar says:

    While filling the order form, you said we could change the exchange from NSE to BSE.But what if the stock is not traded on BSE.Can we still fill BSE? Can a company be listed at more than one exchange?

    • Karthik Rangappa says:

      If the stock is not listed, then it wont show up in the order form. But yes, a company can be listed in more than 1 exchange.

  46. Harish Puppala says:

    Hi Team,

    Myself Harish and i am new trader with Zerodha, my exp in past 1 month is trading with Zerodha is good in case to Edit / Cancel an order. But the main problem i was facing is, there is no option LTP (Last Transaction Price) in Kite.zerodha.Orderbook, so if a Trader places an order of 10 different stocks he need to check with the existing price in the Left Search Panel always.

    The Same option Avg Price & LTP are available side by side in both Holdings and Positions Tab, but it’s more useful in Orderbook i suggest.
    Please let me know whether this option can be provided or is it possible issue in near future.

    Thank you.

  47. ddas says:

    Hi guys, you are doing a wonderful job. I have read this chapter. I want to know what is the effective difference between Limit order and SL-Market order. Suppose, the LTP of a share is 100 and I want to buy it at 95. I can do that in both ways.

    1. I put a limit order at 95.
    2. I put a SL-M order with trigger price 95.

    In both the cases, when the share come to 95 the order gets executed. So, what is the difference between them?

    Thanks in advance.

    • Karthik Rangappa says:

      Limit order = When you want to buy/sell a stock at a specific price you opt for a limit order
      SL-Market = When you want to set a stoploss and want to sell the stock at market when your SL breaches.

      In the first case execution is at 95, in the 2nd its not guarenteed.

  48. Elanchezhiyan says:

    By default the bid ask has a depth of 5only. How to see it more?

  49. Ajay says:

    If want to see more than best 5 bids and best 5 asks, then how can i see that???? (for taking positions for a very small time)

  50. Rock star says:

    When is zerodha implementing GTC? Whats the hurdle stoping zerodha not implementing GTC? Its very beneficial for value investor who is not monitoring stock daily.

  51. Chandana says:

    Hi Karthik,
    I am a new customer of zerodha and I usually trade in FNO and never faced any challenge there.But today I tried to sell a stock from my holding in CNC and alas! the order taken was for day selling which I had to buy back.No share from my demat has been debited.Pls help me in solving this problem as I am totally confused.

    • Karthik Rangappa says:

      When you intend to sell from your demat account, please ensure you select ‘CNC’ as your product code.

  52. Ram says:

    How to modify sl-m of a stock

  53. Vishal says:

    Hi Karthik,
    Today I was trying to short sell a stock via zerodha pi , but was facing difficulty.
    Every time it was getting rejected with some messages like RMS BLOCKED, etc. Till now I was doing normal buy & sell, & I have no idea about how to short sell a stock via Zerodha PI.

  54. vishal says:

    i right clicked on the stock, selected sell, selected normal, between , normal & cover, then in product selected mis , as i was trying to short sell, order type was selected as limit.

  55. vishal says:

    instead of normal, should i select cover?

  56. Raju says:

    I have a question regarding Bid and Offer quantities.
    Infosys at 1.15 PM today is trading down at -1% and Bid and Offer quantities as below.
    Bid – 3.2 Lacs
    Offer – 2.7 Lcs
    Since Bid price is the price at which buyer is ready to buy and Bid qty is more at present …this means that more people are ready to buy and we can expect the price to go up in near term?

    AT the same time, Reliance is trading up at +0.8% and bid and offer quantities as below
    Bid – 1.9 Lacs
    Offer – 2.6 Lacs
    Sice offer qty is more here ..more people are ready to sell and we can expect the price to go down in near term?

    Please enlighten me.

    • Karthik Rangappa says:

      Raju, Bid and Ask is very transient in nature. They keep changing every second, and thus what you see now may not be the same the very next moment. Hence you cannot draw any directional information based on this reading.

  57. Vishal says:

    Hi Karthik,
    how to add multiple workspace on zerodha pi? I was not able to find any option to add multiple workspace.

  58. Md asif farid says:

    Please upload video tutorial in youtube it would be more better than this for understanding..

  59. Suppose a share locked at lower circuit say 100 rs. I want to buy that share when lower circuit breaks suppose at 101 then how can I add order to buy at higher price so when LC breaks it gets in 101.

  60. Raj says:

    I want to ask one question. If I place a limit order to buy some shares of a company at Rs1000 but if I couldn’t find any seller who is willing to sell at that price. Will I be charged any brokerage if my order gets cancelled after some time?

  61. Suja says:

    In order book snapshot: The order type is limit and you have limited the buy price at 332
    In trade book snapshot: Why is the trade price is 334.15? It should have been 332 as per the concept of limit order type.

  62. Ramesh Vellaisamy says:

    In zerodha, is there any option like changing from interaday to delivery and vice versa after our order gets executed.
    I am using sharekhan…where we don’t want to mention it is a interaday or delivery while placing order..if we will not square off at the end of the day ,it will be considered delivery order..and money get detected from our account….
    How about zerodha? Can V use like this?

  63. BOOBALAN JS says:

    Pls share the formulate to calcualte the Average traded price.

  64. Gyanendra Vardhan says:

    hi, Both pi and kite are great platform, however both are not the same. i.e. a few things are missing from kite and vice versa. I was hoping you guys work on following features
    1. Allow multiple login (atleast 1 session in pi and kite).This will allow users like me to leverage both the features. Like pi has great tradescript features but i find it easy to have charts loaded on chrome because of many more technical indicators available there.
    2. Chrome Push notification in kite. e.g. is when a supertrend happens i want to push chrome alert. I have multiple charts open on my chrome but i may miss because manually not possible to scan through every chart every min).
    I am still learning and new to stock trading. I am software tester by profession, so from a usability view point i see some enhancement here and there will make zerodha the one stop trading platform for me.

    If you want i can list down quite a few things which needs improvement.

  65. thinesh says:

    Dear karthick,
    I have a case here. Two questions in total..
    Question 1 :
    In simple words., Is a Stop loss order is equal to take profit order also?
    I have sold xyz shares at 325 (SELL ORDER).
    case 1 : if price goes above 325 and i want to square it with losses at 350, then i will set a trigger price of 349 and price at 350 (Stop Loss, BUY order) which means i will suffer a loss of 25 rs. this is called a stop loss order.
    case 2 : if price goes below 325 and i want to square it with profit at 300, then i will set a trigger price of 301 and price at 300 (Stop Loss, BUY order) which means i will take a profit of 25 rs. Is this type of order possible to set the profits like the same as setting the losses in case 1 ?

    Question 2 : Suppose xyz is trading at 325 . Now if I want to BUY the same at 340 when it reaches 340, does the following order makes sense?
    I am putting a Stop loss BUY order with price at 340 and trigger price at 339. This means that CMP is 325 and if the price reaches 339 the order gets triggered and if price reaches 340 the system should buy the same.

  66. Vijay says:

    You have this comment above where you are explaining about trade book – “You now officially own 1 share of ITC. This share will reside in our DEMAT account till you decide to sell it.”

    Isn’t it the buyer’s or user’s DEMAT account OR it actually resides in Zerodha’s DEMAT account

  67. Parth says:

    Assuming that I am a swing trader , would I be using CNC or NRML?
    1. Let’s say I go long on a particular stock and select CNC for the buy order . Now , is it possible to sell the stock on the same day if the t arget is reached ? ( Keeping in mind that I selected CNC)
    2. Let’s say I go long on a particular stock and select NRML for the buy order . Now , is it possible keep the stock for multiple days if I need to? ( Keeping in mind that I selected NRML)
    Thank you.

    • Karthik Rangappa says:

      1) If its a futures contract, then it has to be a NRML. For stocks you can still do an intraday with CNC as the product type.

      2) No, you will have to select CNC for this.

  68. prashant says:

    Market depth chart shown above depicts orders , qty and price . Now i want to ask , the details in market depth are taken from exchange or details are taken from brokerage house based on orders received from their clients. Meaning zerodha shall show their clients ask/bids or whole exchange?

  69. Kavitha says:

    Does “volume” remain constant?

  70. kabilan says:

    i plan to buy 20 shares on some company.but wrongly i sell 20 shares on that company….what can i go in intraday

    • Karthik Rangappa says:

      You can buy back double the quantity on the same day. For example if you wanted to buy 100 shares, but instead sold 100…then you can buy back 200 shares. What this does is, one set of 100 shares will close your existing short trade…and other 100 will create a fresh long position, which is what you really want.

  71. Manish kumar says:

    What is the difference between NRML and MIS order?

    • Karthik Rangappa says:

      You choose NRML when you intend to carry positions overnight. You choose MIS when you intend to square off the positions within the day.

  72. Amit Deshpande says:

    Hi Karthik ,

    I logged in Kite Web & searched for Nagararjuna Oil Refinery stocks here I got three option
    Nagaroil – NSE
    Nagaroil – BL – NSE
    Nagaroil – BE – NSE

    My question is what this BE & BL is ?

  73. I want to know when depth option is click for the shares in the mobile app. Bid and offers shows along with 2 set of numbers. Can you explain what is buy price and available of shares and same for sell price.

  74. Padmakar Pawde says:

    What is disclosed quantity ??
    Does SL, trigger price terms has the same meaning while selling stocks ??

  75. Vishal Oturkar says:

    First of all Thank you so much Karthik for educating us.
    i have some Questions
    1) If i open account with Zerodha – Do you provide Mobile Trading app ?
    2) Since we are new with this App , does your sales person provide Demo ? how to use this app ?
    3) i heard that Zerodha Charge Rs 20 for every call , for customer care support ? is it true ?

    i am sorry if it is not right place to ask you these question.

  76. Vishal Oturkar says:

    Hello Karthik,

    i have one doubt , if i set stop loss at a certain price i.e 100 and on the next day of that due to some news market clash and open to 60 , in this case what would happen with my stop loss ? also let me know that can we deal in Pre-Open session ?

  77. Rakesh Mandal says:

    I want to buy a share on BSE with limit price and hold for 2 to 5 days. Then, want sell when I will see the price reaches my target price. Which options I have to choose? Is it in this order – CNC>REGULAR>DAY on KITE?

  78. iK says:

    Let’s say that I have a strategy that buys at breakout level. The current price is 100 but according to my strategy, the breakout level stands at 103. Can I place an order to buy at higher than the current price (ie buy order @ 103 when current price is 100)?

  79. fredy m. paul says:

    suppose gail is trading at 441 and i want to buy only at 443. how to put limit order in this situation? it seems when i put buy limit order at 443 trade gets executed at the current price

  80. venky says:

    i brought 1500 andhra bank share and after one month i tried to sell my shares , but when i sold my shares my position is showing as -1500 in trade book. when i checked my admin position net qty is zero. but at a same time my stock holding is showing as 15000.

  81. hitesh says:

    can you pls help me how to buy futures in zerodha pi

  82. p.shunmugaperumal says:

    i need some of the details for placing the order if i am saying anything wrong about placing order pls correct it

    exchange: where i will choose nse or bse or mcx
    inst name :
    eq: equity
    nfo: niffty
    mcx: commodity

    symbol : pls say what are the option are available and their purpose
    strike : strike place
    validity: upto how many days i can hold
    nrml normaly i can hold
    mis at 3.15p.m autosquare off take place
    if any available pls inform it and say its purpose

    disc qnty means what to given

  83. sachin says:

    Sir I Want To Buy Nifty Future lot of current minth siries for intraday…. I want to buy It for Intraday by useing Levearge.. so my questuion is that can i buy it on my own price (limit price)???

  84. p.shunmugaperumal says:

    explain me about the different stock exchange i have type some stock exchange here what to choose for what product


    • Karthik Rangappa says:

      nse = National Stock Exchange, choose this for EQ transaction
      bse = Bombay Stock Exchange, choose this for EQ transaction
      nefo = National Stock Exchange, choose this for derivative transaction
      nsecd = National Stock Exchange, choose this for currency transaction
      mcxsxcd = Multi Commodity exchange, choose this for currency transaction
      ncdex = National Commodity and Derivative exchange limited
      mcx = Multi Commodity exchange, for commodity trading
      mcxsxeq = Not functional
      mcxsxfo = Not functional
      bsefo = Bombay Stock Exchange, choose this for trading derivatives on BSE
      bsecd = Bombay Stock Exchange, choose this for currency transaction.

  85. deepankar.nayak says:

    Hi! The article doesn’t say what is SL-M. How is it different from SL?

  86. Ayush says:

    What the difference between trading terminal and simple trading by buying online?

  87. Imran Husain says:

    Hi Karthik… first of all let me thank you and zerodha for such an excellent insight into the trading market! have learned loads here which i cant wait to apply to the real trading (After having done paper trades for a cpl of months!)

    I have a final query before i start though and wonder if you can tell me if my calculations are correct…

    Suppose i use cover order to place an order for 800 shares for ITC @ 282 with a stop loss of 277, then the margin req is 8122. If the price goes up to 295 then as per the brokerage calculator i make a profit of 10276.83/- (net). So my total amount is 18426.83/-. THen as the market is going to average out before EOD, i short 1700 shares @ 294 (again using a cover order) with a SL of 299 and the margin req of 17993/- and the price comes to 285, i make a profit of 16790.36/- (net). So my total profit at the EOD is 27067.19/- (10276.83+16790.36).

    Is this calculation correct?

    • Karthik Rangappa says:

      Thanks for the kind words, Imran.

      Your profit on the first trade is 295-282 = 13
      ITC lot size is 2400
      P/L = 2400*13 = 31200/-

      You will have to do similar calculation for the other trade.

  88. Gaurav kumar says:


    I want to enter with large volume say 5000 shares in a particular stock.Should I enter through Bracket order or Cover order would be best option?
    Would there be any movement in the price after entering through such a large volume??
    Please reply…..

    • Karthik Rangappa says:

      It depends on your purpose. If it is for intraday trade, you could try the BO. If it is for delivery, you should choose CNC. Regarding the price movement, again it depends on the stock and its liquidity…for something like INFY or RIL which is very liquid, it would not matter at all.

  89. Akash says:

    Sir, i have few questions.
    1. What will happen if the the CMP reaches the stoploss price? Will it get automatically sold?
    2. What does trigger price actually do?
    3. How is trigger price helpful, how does it effect the shares we are holding?

    • Karthik Rangappa says:

      1) SL will trigger. It does trigger automatically, but its always prudent to double check this once. There are instances when price drops below SL and SL would remain pending, so always double check
      2) Trigger prices wakes up the sleeping SL order
      3) Trigger is just a trigger to trigger the SL order 🙂

  90. rohit sharma says:

    Are stop loss orders placed only when we have any existing position?
    For example I want to short nifty may 9400 [email protected] or above
    But it is trading at 90 (I don’t have any existing position)
    How order is placed using Sl-m

  91. Anil Bhardwaj says:

    Sir, Can i put a Target price & Stop loss price at the same time for a MIS share on Kite.
    E.g. if some ABC stock trading on 100. Can i put target price of Rs. 110 and stop loss price of Rs. 90 simultaneously on normal MIS stocks.

  92. Ganesh says:

    Hello Sir,
    NOW software is the same under all brokers because it is directly linked to NSE servers and controlled by it, likewise is NEST software same under all brokers and is it directly linked to the NSE server and who manages NEST? and what are the differences between NOW and NEST?

  93. sahilkala says:

    Sir I have two queries:

    1. Many a time in the above discussion you have mentioned this: ” If you opt for MIS, you will get additional leverage.” What is meant by this additional leverage ?
    2. Suppose I buy a stock at Rs. 100 with a stop loss of Rs. 95 but then I see that the price of the stock has risen to Rs. 110 can I change my stop loss value to Rs. 105 or any other value ?

    Thanks and Regards,
    Sahil Kala

    • Karthik Rangappa says:

      For every 100 Rupees of yours, a broker can give you additional 100 rupees to trade. So instead of 100, you will have 200 Rupees to trade with. This is called leverage.

      1) MIS product type gives you more than the usual leverage provided by the broker
      2) Yes, you can.


    while buying share i find written disclosed qty. Can u plz elaborate what is it???

    • Karthik Rangappa says:

      If you want to buy/sell in a large quantity, then you may or may not want to disclose the order size to other market participants. Under such a scenario, you can simply opt for a disclosed quantity. Under disclosed quantity, you only expose a small part of your order, once this is filled, another small part will be exposed. So on and so fort till your entire order is executed.

  95. Ramamoorthy Arunasalam says:

    I am new to zerodha. I have been CNC so far. Please let me know if I sell from my stock and wish to buy the same quantity. this would be treated as Intraday? should I convert to MIS before buying or just buy.

    • Karthik Rangappa says:

      When you place the order, make sure you opt for MIS orders. Shorting in EQ has to happen on a intraday basis. You cannot carry forward the short position.

  96. yogesh bhansali says:


  97. VANKUMAR says:

    Hi Karthik good evening. On 24/05/2017, I bought AMARA RAJA FUTURES @ RS.883/- around 1 p.m., The quarterly results announced and suddenly fell to Rs.812 or so and bounced back to Rs.830/- very fastly. Normally on the sellers side price will be from lower to higher and on buyers side in the reverse. How that mechanism works?
    2. In the normal course if inadvertently I put a selling order for a price lesser than the market price say for Rs.860/-, it get executed at the market price say if the buyer is at Rs.884/- and vice-versa. Thus the buyers and sellers are protected. If I put a Stop-loss buying or selling order is put it gets executed when the price touches that level or else not. But how this sudden fall of price is executed.
    3.Similarly in case of sudden rise also in price.
    4. I request you to clear my doubt and guide on the mechanism involved in it?

    • Karthik Rangappa says:

      The sudden fall is attributable to the event driven volatility. Whenever events like this hits the market, then the volatility shoots up and prices tend to move rapidly. Under such a scenario, SL orders may or may not go through since there would be intraday price gaps.

  98. Shashikant v Panat says:

    I am NRI. I am a U.S. citizen. I live in Los Angeles. Would I be able to open an account and be able to trade in from overseas? I do have a PAN card. Thanks

  99. VANKUMAR says:

    Hi Karthik In my recent studies I came across Order-Flow Indicator which tracks the order flows in real time and also in EOD. I am amused to note that the Order-Flow, Foot Prints, Depth of the Market (DOM) negates all the technical analysis and even though we expect the scrip to move up, it suddenly plummets down leaving in shock the buyers who run hastily to come out with losses. In next few minutes it reverses and shoots up. This is how buyers and sellers are trapped. Can you pl advise how to guard against such eventualities. What are the order flow indicators software providers for NSE STOCKS.

    • Karthik Rangappa says:

      Frankly, I’ve never used this indicator and hence I cannot comment on it. From what you’ve described, it seems to be quite noisy….and therefore not too reliable.

  100. Anish Chandrasekaran says:

    Hi Karthik,
    If we get a recommendation call from experts like- Buy ABC CE option above Rs.25.
    How do we set it up in PI? This I am asking because I may not be there in front of the PC when the recommendation comes and I cannot keep watching when it will go above 25. In that case how do I set up the trade in PI?

  101. Sauvik says:

    Hey Karthik I have a question,

    Suppose I have a previous holding, and on a certain day I sell it, my mode of selling is CNC.

    1)what will happen if the prices of the stock rise more than my sell price, and I buy them back before EOD. what will the case of profit or loss, and how my holdings will get affected??

    2)What will happen if I see that the prices are falling and I buy the same back? Will it be considered as an Intraday trade, and will I earn profits?

  102. Vijay says:

    How many days is validity of open stoploss order? Do I need to place an stoploss order everyday for holdings?

    • Karthik Rangappa says:

      SL is a day order, valid till the market close. Given this, you may want to place your SL order on a daily basis.

  103. shankar says:

    bought share on NRML or MIS mode, but EOD made my mind to take delivery. Can I do it and how?

  104. Ajay says:

    Hey Karthik – Is it possible to define SL and target on AMOs?

  105. Esan says:

    sir if i were in a normal order on the next day i place after market stoploss order if the price opens below my stoploss price whether it will take my stoploss price

    • Karthik Rangappa says:

      No, you will have to place a fresh SL order for the next day.

      • Esan says:

        sir if i place stoploss order on the next day before market starts whether it will take my stops if price open below my stoploss

        • Karthik Rangappa says:

          If the price jumps directly to a price point below your SL, there your order may not really go through. It is always a good practice to double check your stops.

  106. Ashish says:

    Hi Karthi,
    My question is if I short a stock say with all my available margin and later on trade goes against me(price of stock rise) and now I need to buy it back to square off, so would I still be able to buy back the sold quantity with no extra margin to accomodate that?

    • Karthik Rangappa says:

      Yes, you can. You are just covering your trade here. No need to park extra margins. Btw, it is never a good idea to utilize all your capital for 1 single trade 🙂

      • Ashish says:

        Thanks for confirming the same and yes I agreed, just want to confirm how much margin I can go with 🙂

        • Ashish says:

          yesterday I was trying to place order to short HDIL stock(stock price usually around 55-60) going by multiplier as 7 for intraday, I should be able to buy stock of amount 154k with 22k available as free cash in my account, but it was not the case instead I was forced to short stock with amount around 70k only with all what I have(22k). May I know why it was the case?

        • Karthik Rangappa says:

          Good luck!

  107. Ajay Kumar bhagat says:

    Hi karthik!
    sorry to put a out of context question.
    I had bought 50shares of Future retail on 4th of August2017 through zerodha trading terminal. during opening of my account I had given my DPID as 013301930001992470(NSDL). However they have changed it to CDSL with DP ID 1204720011291213, which was not updated in zrodha because I had not resubmitted the new DP ID.
    How to recover the above bought shares.

  108. Esan says:

    sir please add ichimoku cloud in pi software

  109. Purnank says:

    As i have query regarding LTP . Is it showing Last trading price or share price at a time?
    If it is last trading price then if in intra day ONGC has share price 160 but i put trade call of buy and sell share at suppose 100rs and 50 shares so would i able to execute that ?? As there is buyer and seller both available

    If it is share price then how this is being calculated ?? Is it like average out price of buyer and average out price of seller and average of both buy average and sell average price??

  110. Spandan says:

    Suppose i got 10 rupees in my account and cost of one share is 10 then i took MIS leverage of 90 rupees which give me a total money of 100 rupees. Now i sold the share at 11 rupees that is around at a total of (11*10=110) rupees which give me a profit of 10 rupees. My question is now the leverage given to me how will it be taken from me. Whether zerodha will take 100 rupees and give me 10 rupees or it will give me 20 rupees as the leverage is 90 rupees.

    • Karthik Rangappa says:

      No, the leverage will come to you in terms of allowing you to buy shares for a higher amount than what you have. So there is no question of taking it back. And when you profit, you get to keep the profit. If you lose, you will have to pay up.

      Fair and Square 🙂

  111. Esan says:

    hello sir i am trading crudeoil alone . crude price is totally dependent on nymex .so my question is can look the nymex crude price chart fot trading in mcx.

  112. Nayan Raj says:

    Hello Karthik,

    I have a couple of questions:

    1. Suppose i have bought a stock at say 400 and i want to have a stop loss at 390 and have set trigger price at 392. Also lets say the current market price is at 398. Due to some negative market news the now there is downward gap and the price is now at say 385 below 392 or 390. In this case will my SL will order be executed or i need square off manually.

    2. SL-M could you confirm if in the above scenario if used will be effective.

    The material and explanation that you have provided is awesome and easy to understand.

  113. Aditya says:


    Suppose I buy shares using product type MIS ( assuming leverage is used ) , what happens if the stocks hits an upper circuit and neither am I nor is the system able to square off my position ?
    Also what happens if the stocks hits lower circuit ?

  114. Apurva Kunkulol says:

    While placing a Stop Loss order, in the buy order form, where does one specify the Actual “stop loss” price?
    Since it has the “price” and the “trigger price” spaces, but not the actual place to specify the stop loss price.
    Also when does the order actually get executed, since whenever I place the order, I can see that it’s in the pending column.


  115. Apurva Kunkulol says:

    I have just bought 2 shares of INFY at Market order, it shows in my order book, but not in the Holdings or positions tabs, so do I have the order? Where can I check if I own the shares, since it shows order “completed” on the “status” tab.


  116. esan says:

    hello sir how to set a target for a trade

  117. Algernon DMello says:


    How do I access this terminal? I have recently opened an account with Zerodh a and was given credentials for Kite. Is Kite a replacement for the terminal described above?

  118. Algernon DMello says:


    How do I access this terminal? I have recently opened an account with Zerodh a and was given credentials for Kite. Is Kite a replacement for the terminal described above ?

  119. PB says:

    Just wanted to know the meaning of SL-M in trading software and trading

  120. Mahidhar Nyayapati says:

    Stop Loss Order requires trigger price of 326.
    Stop Loss was at 325. As mentioned in the article, Stop Loss Order trigger was set to 326.75. this means if the price drops to 326.75 from 332 Stop Loss gets active. In that case at what price will the share be bought 332 or 326.75?

    Later the article states that if there is a seller for 332 and order is sent it will get executed. Will it get executed at 332 without the price going down to trigger price of 326.75 or 325?

    Can you please clarify about trigger price and the price we quote to buy?

    Please also explain what is SL-Market or Stop Loss-Market?

  121. Sang says:

    Hi…I have tried to buy CNC shares of SORILHOLDINGS today…but the trade got rejected..What’s the reason behind this??

  122. Nancy says:

    The last traded price of a share was Rs 607. I placed a LIMIT order after market hours (AMO) and entered the trigger price as Rs 610. The next day the opening price of the stock is Rs 605. At what price will I get the stock at Rs 610 or Rs 605? If the answer is Rs 610 please tell me what should I do to buy the stock at any price below Rs 610?

  123. Arun9999 says:

    Hello Karthik

    I want to place a SL(Buy)
    Now mp is rapidly moving from 345…350…351…and directly to 353.50
    Then after market start falling(for case1,case2,case3)
    Case1:now mp-353 here my order execute at 353 or not?(ie. , can I get script at the price of 353 if seller available? YES OR NO)
    Case2:now mp-351.50 then availability of seller at @351.50, @352,@352.50,@353 what price. My order execute?
    Case3:now mp-352 order will exe at 352 if seller available at that price?
    Case4:normally in SL order if seller is available at TP order is exe at TP if MP hits TP?(YES OR NO)

    • Karthik Rangappa says:

      1) Yes, you will get it at 353
      2) Since your limit is at 353, you will get it at 353
      3) Limit price at 353

      • Arun9999 says:

        Tq Karthik,
        I am confuse with case3 even mp at 352 order will exe at limit price 353 only. As well as no seller available at price 353 but available at 352. So above buy order will not go for better price that is 352 instead of 353.

  124. Abisheik says:

    Hi Karthik – Hats off!!….Informative and so easy to understand..I now know meaning a for lot of acronyms.

    One small suggestion:
    I see comments/questions being posted by quite a lot of ppl and you continue to answer all of them :-). Is there a way you can rank in order or flag some, that you feel is quite informative and important for readers like us to get more insight.

    Thanks. Appreciating all your hard work!!!

  125. Apurva A Kunkulol says:

    If I have to place an SL or an SL-M order and want it to persist till the time the price drops/increases to the trigger, can that be done?
    Or do I have to place these orders everyday?

  126. Apurva A Kunkulol says:

    When it is said that the Limit price must be greater than the trigger, for a BUY, is the assumption that the price is seeing an upwards trend and vice versa for a SELL order?
    If I want to buy while the price is showing a downward trend does the Limit price still have to be greater than the trigger?


    • The way stop-loss orders work work is they need a trigger to get activated after which a limit order can go live with the exchange. Therefore when you place a buy limit order, the limit price should be higher than the trigger and vice versa for Sell Stop-loss.
      This has nothing to do with what trend the script is moving with. Although I understand you want a better price and want to place a lower price in case of a buy and higher in case of a buy, the exchange NEAT system doesn’t allow that. You can read on the same here. This is because stop-loss orders are built for risk mitigation and serves the purpose well

  127. sudheer says:

    I think varsity team should update the content of this module and screenshots as the trading platform has gone significant changes since the module was originally written.

  128. Priyank Mathur says:

    Hi, I’ve just joined the Zerodha and I’m totally new to this. I’ve opened my account with PAN & Adhar, now can I start trading or do I have to open a Demat account for trading?
    P.S: I haven’t fill a single sheet of paper.

  129. Ganesh says:

    How do I place a target and stop loss for stocks that I have in my holdings

  130. Pushkar says:

    Hey Karthik,

    Does Zerodha have scaling out(selling a part of the stock as profit targets are achieved) option in selling the stocks?

  131. Saify says:

    Hi Karthik,

    Trying to install Pi on my PC, but my Symantec antivirus is identifying Pi as an virus & removing it.

    Can you help pls.

    Thanks !!

  132. Saify says:

    Moreover, the Symantec is identifying Pi as an untrusted source.

  133. Amrutha Shekar says:

    Hi Karthik,

    All of your explanation is simple and easily understandable, one of my question is how to buy future contract i have read future related topics, Cannot we use zerodha kite mobile app for this or we should have to use trading terminal only if we want to buy it by our selves and one more question is we should check lot size by using margin calculator separate outside the kite app is it?

    Thanks in advance!!

  134. Kans says:

    Hi Karthik,

    You must have aware that how it’s important for a trader to have a Sound Notification for 2 things i.e. when the order is successfully placed / cancelled / rejected & as soon as the Trades get Executed. So;
    a) In Zerdha Kite – It does not notify with any sound as soon as the trades get executed.
    b) In Zerodha Pi – It does not notify with sound if the order is successfully placed. However, it does at the time of trades get executed but with a very lengthy voice which is really annoying. It must be with a normal sound like beep once…

    I am requesting you to please incorporate all order events (in Kite & Pi) with a Sound & Better to be it as a Normal sound like Beep Once… ( When order successfully placed /cancelled / rejected + When Trades get Executed )


  135. Lawang Sharma says:

    Thank you So much for this module. Was of great help in understanding how trading is done, which was my wish since so so long!

  136. Swapnil says:

    I’m new to this world, and i have recently opened a demat a/c elsewhere, after reading this i’m very much interested in opening a/c with zerodha, is there any way i can transfer my demat a/c ??

  137. Raghu says:

    I am new to Zerodha platform. Looks like the UI has changed currently. Might be it is time to update the screen shots in the varsity?

  138. trader says:

    Hi Karthik,

    Zerodha is doing just great in almost every aspect that I can think of. Whether it is educating traders, competitive brokerage charges, tools to analyse charts, etc. I have been trading with zerodha for quite some time now. However, these days I face a very frequent issue with respect to the speed of the platform (kite) during the trading session. I have noticed this a number of times that when i am fully zeroed in on a good trade I am not able to palce the order as it gets stuck. i tried with kite 3.0 also but the issue is persists. The speed of kite is unbelievably slow and charts are not loaded in right time. could something be done about this?? i do not want to change the broker as zerodha offers plenty of good things for traders but this speed issue especially when markets are live is troubling me alot.


  139. Vibhor says:


    Just one ques, suppose I am buying a stock at 30 and placing a BO. so in Trigger, SL, target and follow SL, what should I put?
    29,28,31,1? respectively OR 1,2,1,1? respectively Please help.


  140. trader says:

    In zerodha margin calculator i see “securities under ban”..does it mean we cannot trade only derivatives of these securities ? or does it also mean that we cannot trade in the cash market of these securities too?

    • For securities under ban period, there is no effect on the cash market. In F&O, fresh positions cannot be created but existing position can be squared-off or rolled over. The security goes in ban after it crosses 95% of its Open Interest limit. Read more here

  141. Ganesh says:

    If I place a cover order, is there any other way to exit the order apart from going to the order book and clicking exit, because that exits the orders at market price. I want to know is there a way to set a target price for the cover order, i.e, exit the orders at a limit price.

  142. shrikant says:

    How can we place order for Futures sing this TT? please explain

  143. Kishor says:

    Hi, I bought 10000 shares of xx script at 7.7 rupees on 29/12/17 and again I bought another 10000 shares of the same script on 01/01/18 at 8.7 rupees. I thought the average price is 8.2 rupees for 20000 shares but it was 8.45 rupees. It was almost 4 to 5 thousand difference for one trade. I checked the contract notes, on 29/12/17 the 10000 shares was bought in 2 lots at 7.7 rupees and on 01/01/18 the 10000 shares was bought in 6 lots at 8.7 rupees.

    1. The average price was calculated for 8 lots, is it correct?
    2. For intraday trading whether i will be charged for orders or lots?
    3. Whether i will be charged for call and trade? if yes how much?
    4. Do we have any webinar session to clarify our doubts?

    Please explain the term “Position” in trading terminology module in our varsity. Thanks

    • 1. Your buy average price is Rs 8.2 regardless of how many orders you’ve bought it in(The calculation goes by (10000*7.7+10000*8.7)/20000). If your seeing a discrepancy, please contact Support
      2. At Zerodha, you will be charged per order for intraday orders(0.01% of turnover or a maximum of Rs 20)
      3. Call and Trade is charged at Rs 20(plus GST) . Check List of Charges
      4. You can attend our platform demo at 2.30 PM and 6.30 PM every day.

      All F&O and intraday equity are called ‘Positions’. If Equity is held longer than a day, it is transferred into your Demat, making it a ‘Holding’

  144. Nagabhushan says:

    Hi Zerodha,
    am repeatedly facing issues related to chart.. suddenly the graphs in the chart keeps showing old data . To explain this technically, when i plot candle stick diagram or heiken ashi sticks.. either the closing or opening values are totally errored and shows huge deviation from current value.
    This looks like the stock just spiked up or low.. and no matter what i could not find any solution. and if this issue occurs then it continues for several hours.. here is what all i did,
    SInce am software test architect and practising s/w testing since 10+ years, i tried all these technical things and figured out that the data feed or chart data coming from your servers are incorrect.
    1. Tried on various browsers IE 11, chrome latest stable version Version 63.0.3239 -> chart issue persists on all these browsers
    2. Tried Clearing cache, temp files –> still same issue on chart
    3. Tried Incognito mode to ensure clean and clear work place for the site –> same issue with chart
    4. tried on someother machine on which kite was never opened earlier –> same issue
    5. changed the internet service provider –> same issue
    at last when i called to your support team, they said that many other customers are also facing the same issue.
    as far as i know,
    neither PI nor Kite had such issues till 2016 (atleast it was rare). but i have noticed in 2017 these issues have raised up considerably like atleast once a week.
    and in 2018, till today i have faced 2 incidents on different days.
    so even though you have latest options or features on Kite/kite3.. due to charting issues.. we are feel nervous to use these applications.
    Kindly do the needful as soon as possible so that such issues will not make satisfied customers look out for other vendors.
    i have raised tickets earlier on this.. and there is no outcome of such tickets. nobody calls and enquires and issues still exists.

  145. Shwetabh Parasar says:

    what is “SL-M” option is for?
    why by default, the exchange specified would be NSE?
    what is spread trading means? and please explain me its connection with long and short position on any stock?

    • Karthik Rangappa says:

      SL-M means stop loss @ market. So when the price hits your SL, the position will get squared off at market price.
      Maybe because of better liquidity, you are free to select any exchange you desire.
      I’d suggest you read the module on Futures for this.

  146. Shwetabh Parasar says:

    My que isnt getting posted
    i have never commented before and its saying duplicate comment detected

  147. Mukesh says:

    How much segment do I purchase in Zerodha at one day??

    AND what can I do when I place oder for sell but it is rejecting??

  148. Karan says:

    How can I partially sell shares in CO in kite?

  149. Sreejith says:

    We are long at Rs.261. In case the trade goes bad we would want to get rid of the position at Rs.255, therefore 255 is the stop loss price. The trigger price is specified so that the stoploss order would transition from passive to active order. The trigger price has to be higher than the stop loss price. We can set this to Rs.256. If the price drops to Rs.256 from 255 the stop loss order gets active.

    What do you mean by if price drops to 256 from 255. I am confused. If price moves to 256 , it is not a drop right?

  150. Vignesh Doraiswamy says:

    Please make me clear on this.
    1) Buying a share by CNC means that i’m willing to hold the share for longer period.
    2) In the above explained chapter, the stop loss order gets active when the price hits the trigger price while i sell my shares.
    3) But why would i want to specify the stop loss value while buying through CNC if i wish to hold the share for say a year. Eg: i buy a share at 262.50rp and let the stop loss price be 255. If the price of a share hits the trigger price 256 and my stop loss order gets activated. All this happens due to resignation of that firm’s CEO. Within few days another CEO is appointed and the price of a share increases to 280rp. What if i wanted to sell my share when price of a share was 280rp but still my stop loss gets activated because of fall in price few days earlier. How should i avoid this if my understanding is right?
    Thanks in advance.

  151. Prakhar says:

    What does total below bid and ask prices respectively indicate.

  152. Krishna Deshmukh says:

    while taking live information about infosys stock: the last traded price was 1014.20 and the stock were down by -0.16% than the previous day which closed at 1015.85 as per the screenshot given, whereas you have mentioned the last traded price as 1014.75 and the stock were down by-0.11% . where did you get that from?

Post a comment