Module 1   Introduction to Stock Market (video series)Chapter 9

Order Types

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9.1 – The order types

While buying and selling a stock sounds simple, there are various other order types to explore to understand what type fits better in your trading strategy. This video will appreciate the multiple order types and their use case in different scenarios.

 

We are at the end of this module; in the following video, we will see how to get started on our financial journey.

We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.


Key takeaways from this chapter

  1. You need to invoke a buy order form by pressing the ‘B’ key to buying a stock. Likewise, you need to gather a sell order form by pressing the ‘S’ key to sell a stock.
  2. You choose a limit order type when you are keen on transacting at a particular price; else, you can opt for a market order.
  3. You choose CNC as a 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.
  4. An order book lets you track orders that are both open and completed. You can modify the available orders by clicking on the change button at the order book’s bottom.
  5. Once the order is completed, you can view the trade details in the trade book. In the case of a market order, you can view the exact trade price by accessing the trade book.
  6. 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.
  7. The bid & ask prices refer to the price you can transact. By default, the top 5 bid and ask prices are displayed in the market depth window at all times.

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