Given below are the types of orders which are used for buying and selling of shares.
Market order: When you put buy or sell price at market rate then the price gets executed at the current rate in the market. The market order gets immediately executed at the current available price.
In market order there is no need to mention the price; the shares will get executed at the best current available price.
If you wish to buy or sell shares at any specific price, i.e. market order is not suitable for you then you have to go for limit order.
Market order is for those who want to buy or sell immediately at the current available price.
Limit order – It’s totally different from market order. In this, the buying or selling price has to be mentioned and when the share price comes to that price your order will get executed at the price mentioned by you.
But here it’s not sure that the price will come to your limit order.
In day trading it’s risky because you have to close all your transactions before 3.30 pm and if in case the price doesn’t reach to your limit order, your order will be open and then you have to go through (bare) heavy penalties. Importantly, limit order and stop loss trigger price are used together.
Stop loss trigger price: Stop loss and trigger price are used to reduce the losses. This is a very important term especially if you are day trading (intraday). Stop loss, as the name indicates, is used to reduce the loss.
You can use a pivot calculator for simple stop loss calculation for delivery based trading and intraday stop loss depends on how much you are ready to lose – the maximum amount you are ready to lose- it also depends on the price movements of the scrip for that particular day
Source : Various