Methods of buying and selling of shares.

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

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74 Responses to “Methods of buying and selling of shares.”

  1. manorma says:

    jst definitions are provided in detail information nt provided!!

  2. sagar sehgal says:

    this information gives me a right direction regarding share marketing.

  3. jyothi says:

    sir am not having any idea about how to trade in this market..i need to know about the margin money and intital depsoit to be kept and how this process goes.what the main point to be kept in mind.what is the maximum money to be invested and how normal earning person can involved in it? my another question is how our deposited money we can be utilised?

  4. faiz says:

    hello everyone i am new to this share market and i want to invest in this market..plz help me out how to do so plzzzzzzzzzzzzzz

  5. pl.tell me where opend dmat.account share boroker , bank account

  6. mmore says:

    Hi, I want to buy share first time, I want to know about minimum amt. with which one can start. If one want to open a demat account what is the processing fee?What is the general brokerage?

  7. A. Kaw says:

    Hi. Like near about everyone above i would like to know how, where, when to invest in the share markets. I checked this website but was not clear to me as i am new to this share market world. Plz guide me in the best possible way.

  8. akhil says:

    what is the trriger price?is it compulsury or whats the benefit of it?i.e whenever i m bying the shares its always showing trigger price and i m leaving it blank so is there any risk?

  9. Rakesh.b says:

    I want 2 start share mkting, but i am not having any knowledge about it.

  10. Geetanjali says:

    how much margin amount should be there to first sell & then purchase? what is the time limit for that

  11. Shiva kumar says:

    Hello all i have planned to invest in shares but i donno any thing about it..I want ask a question, If i want to buy a share what would be the minimum investment required?And i got 1000 rs only..

  12. mithilesh says:

    hello,i am a positional trader due to i have some money(something 2 lacs rupees .but i want to make a swing trader.please help me.i can pay for this facilities

  13. Setul chowdhary says:

    I’m plan to trading at my home & i know basic about it is relayable for me

  14. [...] Methods of buying and selling of shares. [...]

  15. Ajay Kr. Shaw says:

    Hi , my name is Ajay , I want to start trading. can you let me know about it.

  16. pArDeEp says:

    i m new here. Plz any one tell me about selling n buying.

  17. dinesh says:

    like al of the above i am too new fr this share i have no any idea about how to buy share? N how to sale it ?what is trigger price? Plz guide me

  18. dinesh says:

    i am to much intrested in share business market bt the problem that im unknown about this .what can i do ? Plz help me

  19. priya says:

    I am new to this field its helps me to know some basics , but plz provide more details about shares and margins .

  20. Mali says:

    i am a fresher, planning to start online trading. I would like to know, what is meant by the heavy penalties as mentioned in the article for a limit order selling.
    please explain

  21. Sanjeet kumar says:

    I m new at sharemarket pl tell about daytrading and about margin amout

  22. sanjeev guthaliya says:

    i want to invest money in share market but i am not knowledge that how to be tading stock market, commudity market,

  23. sunita gupta says:

    sir,tell me about of share market and how invest in share .how way the share buy and sell.

  24. sunita gupta says:

    i would like to know every step of can i invest nd which company

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