NSE NOW EXE- Question about order types! Help needed.

Hello Friends,

I recently opened an account with Zerodha and using NSE NOW EXE. I logged to the application and I need few questions to be clarified.

There are 4 types of orders. LIMIT, MARKET, SL & SL-M.

I understand only one order type from above which is MARKET. It executes buy or sell order at the market price. I request you to explain me the other types.

What I want to know is this. Assume the below scnario.

I bought Nifty @ 4980. Now I want to place 2 more pending orders. One for SL @ 4860 and TP@ 5010. Which of the above type that I should select to place my TP and SL?

Thanks!

Please help! This is very important for me!

Thanks in advance!

you did tell about SL-M !

Hi firstpip,
Limit order is the one where the price will be specified by you, if a matching counter order is placed the order will get executed.
Stop loss order is the one to exit the position if certain price level is touched(trigger price),you have to specify the limit price at which you want to exit the position.
SL-market in this kind of order if certain pricelevel is touched the order will get executed at the best available price at that time...
For your above example you have to place a limit order at your target price @5010
And for the Stoploss you can place stoploss limit order or stoploss market order...it is safe to place a stoploss limit order , you can place it by punching 4860 as the trigger price and limit price as 4860 or less if you are in a buy position and 4860 or higher if you are in a sell position....
Placing SL-market may be risky...
In practise you can utilise all these order types to enter or exit the positions..
All the best,
praveen