Query on Placing Limit Orders????
- Thread starter TRADERSHIVA
- Start date
According to http://content.icicidirect.com/learning/LearningCenter/Module4.htm#9
Limit Order : The order refers to a buy or sell order with a limit price. Suppose, you check the quote of Reliance Industries Ltd.(RIL) as Rs. 251 (Ask). You place a buy order for RIL with a limit price of Rs 250. This puts a cap on your purchase price. In this case as the current price is greater than your limit price, order will remain pending and will be executed as soon as the price falls to Rs. 250 or below. In case the actual price of RIL on the exchange was Rs 248, your order will be executed at the best price offered on the exchange, say Rs 249. Thus you may get an execution below your limit price but in no case will exceed the limit buy price. Similarly for a limit sell order in no case the execution price will be below the limit sell price. Market Order : Generally a market order is used by investors, who expect the price of share to move sharply and are yet keen on buying and selling the share regardless of price. Suppose, the last quote of RIL is Rs 251 and you place a market buy order. The execution will be at the best offer price on the exchange, which could be above Rs 251 or below Rs 251. The risk is that the execution price could be substantially different from the last quote you saw. Please refer to Important Fact for Online Investors.
Limit Order : The order refers to a buy or sell order with a limit price. Suppose, you check the quote of Reliance Industries Ltd.(RIL) as Rs. 251 (Ask). You place a buy order for RIL with a limit price of Rs 250. This puts a cap on your purchase price. In this case as the current price is greater than your limit price, order will remain pending and will be executed as soon as the price falls to Rs. 250 or below. In case the actual price of RIL on the exchange was Rs 248, your order will be executed at the best price offered on the exchange, say Rs 249. Thus you may get an execution below your limit price but in no case will exceed the limit buy price. Similarly for a limit sell order in no case the execution price will be below the limit sell price. Market Order : Generally a market order is used by investors, who expect the price of share to move sharply and are yet keen on buying and selling the share regardless of price. Suppose, the last quote of RIL is Rs 251 and you place a market buy order. The execution will be at the best offer price on the exchange, which could be above Rs 251 or below Rs 251. The risk is that the execution price could be substantially different from the last quote you saw. Please refer to Important Fact for Online Investors.
Things are very clear per your example.
Sir, Can you clarify, though done so by a few members :
Can I place following orders at 9.30 AM (25 minutes before mkt opens) or even earlier for RIL which closed the previous day at 250/- :
a. Limit order Buy above 255/ upto 256/-
or
b. Limit order Sell below 245 upto 244/-
or
c. Buy at market rate
I was under the impression that orders whether mkt. or limit could only be place while the market is open.
Sir, Can you clarify, though done so by a few members :
Can I place following orders at 9.30 AM (25 minutes before mkt opens) or even earlier for RIL which closed the previous day at 250/- :
a. Limit order Buy above 255/ upto 256/-
or
b. Limit order Sell below 245 upto 244/-
or
c. Buy at market rate
I was under the impression that orders whether mkt. or limit could only be place while the market is open.
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| K | Education Loan EMI Interest Rate / RBI Repo Rate Query | Loans | 0 | |
| T | Selling options for income query | Options | 21 | |
| R | query about sum insured vs top-up | Insurance | 1 | |
| P | IL&FS query on Demat. | Brokers & Trading Platforms | 0 | |
| I | Query about 10 lakh high value stock transaction | Taxation Matters | 1 |