✅ Types of Stock Market Orders
When you start trading, understanding order types is very important. These decide how and when your trade will be executed.
1. Market Order
- Buy or sell immediately at the current market price.
- Fast execution but price may vary slightly.
2. Limit Order
- You set a fixed price to buy or sell.
- Trade happens only when the stock reaches your set price.
- Useful for controlling entry and exit price.
3. Stop Loss Order
- Protects you from heavy losses.
- Example: If stock is ₹500 and you set stop loss at ₹480, trade will auto-execute when price falls to ₹480.
4. Stop Limit Order
- Combination of stop loss and limit order.
- Helps in reducing slippage and controlling trade.
5. Bracket & Cover Orders (Advanced)
- Bracket Order: Includes target profit + stop loss.
- Cover Order: Compulsory stop loss along with order.
💡 Conclusion:
Choosing the right order type helps you reduce risk and manage trades smartly in the stock market. Beginners should start with market & limit orders, then slowly learn advanced orders.
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