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INVESTING & TRADING

By Ankit Dalal

• 18 articles

What is a Limit Order?

It is an order type to buy/sell a share at a specific price. It's helpful to trade security at a desired price. Let's understand limit order with an example Buy Limit Order Suppose HDFCBANK is trading at ₹1,400 and you wish to buy it at ₹1,330 so, a limit order can be placed for HDFCBANK and the stock will be bought at ₹1,330 or lower Sell Limit Order Suppose HDFCBANK is trading at ₹1,400 and you wish to buy it at ₹1,440 so, a limit order can be placed for HDFCBANK and the stock will be bought at ₹1,440 or higher Note: limit orders can only be placed for 1 day. To place it for a longer period of 1 year, GTT Orders are placed.

Last updated on Jun 09, 2025

What is Immediate or Cancel (IOC) validity

Immediate or Cancel validity (IOC) allows the client to buy/sell a security on-the-spot failing which, the order will be canceled from the system. Traders usually use IOC to check the market depth of a stock. Note: In an IOC validity, a partial order can also be executed when there is not enough liquidity in the market.

Last updated on Jun 09, 2025

What is Day validity?

An order with day validity will either get executed on the same day or will be cancelled.

Last updated on Jun 09, 2025

What is an After Market Order (AMO)?

As the name suggests, an AMO order allows the client to buy/sell the shares after regular trading hours when the market is closed. Although the order will get executed when the market opens, this feature helps clients who are unable to actively trade during market hours. Timings to place an AMO order are 4:00 PM to 8:55 AM on both the BSE and NSE.

Last updated on Jun 09, 2025

Where would I get notification, to authorize UPI Fund addition?

The notification to add funds will arrive on the app whose UPI is added.

Last updated on Jun 09, 2025

What is a quarterly settlement (auto payout done to my registered bank a/c)?

As per SEBI's guidelines, brokers must transfer funds from the client's trading account to the registered bank account. This process is, quarterly settlement of funds or running account settlement. SEBI says, the running account of funds shall be settled on the first Friday of every quarter, and if the First Friday is a holiday then settlement shall happen on the previous trading day. For more reference checkout: https://www.sebi.gov.in/legal/circulars/jul-2022/settlement-of-running-account-of-client-s-funds-lying-with-trading-member-tm-_61222.html.

Last updated on Jun 09, 2025

Why doesn't my stop loss order get executed after I reach the price I want?

This situation can occur when there is not enough market depth available for that security. For example, you set a stop-loss at ₹90 for a stock & there are 50 buyers and 100 sellers who are waiting to trade on this script at ₹90. Upon reaching ₹90, the first 50 sellers’ orders will be executed, and the remaining sellers will have to wait for new buyers. As a result, your order will not be executed if there are no corresponding buyers.

Last updated on Jun 09, 2025

A limit order helps to buy/sell a security at a desired price meaning the client is not bound to trade the security at current market price whereas in a market order, you can only buy/sell securities at the current market price.

A limit order helps to buy/sell a security at a desired price meaning the client is not bound to trade the security at current market price whereas in a market order, you can only buy securities at the current market price.

Last updated on Jun 09, 2025

What are Stop Loss Orders?

A stop loss order is a buy/sell order executed when the price of the security reaches a certain level set by the client. The purpose of this is to limit the loss on a particular trade. Let's understand this by an example: A stock is trading at ₹200 and the client's limit to bear the maximum loss is at ₹190 so a stop-loss order can be placed where (in a worst case) if the stock reaches ₹190, the sell order will be executed. There are 2 kinds of stop-loss orders a) SL Limit order which has Price + Trigger Price b) SL Market order which has Price Note: SL Market orders are blocked for all the securities(Equity segment, Equity Derivatives segment, Currency Derivatives segment and Commodity Derivatives segment) listed on BSE and for options on NSE.

Last updated on Jun 09, 2025

What is Good Till Trigger Order(GTT)?

GTT is a limit order which stays active until the trigger price is met. Pocketful gives 1 year validity for a GTT order after which it'll be automatically cancelled. Once the stock hits the trigger price, an email on registered mail and a notification will be sent on the app. Note: On Pocketful, GTT can only be used for Cash and Carry (CNC) orders in the equity cash segment on NSE and BSE.

Last updated on Jun 09, 2025

What is the validity for GTT Order?

Validity for a GTT order is for 1 year.

Last updated on Jun 09, 2025

Can I place an Intraday Order using GTT?

No, you cannot place an intraday order using GTT.

Last updated on Jun 09, 2025

Why did my Limit Order get executed at market price?

A limit order is to buy/sell a share at a specific price. It's helpful to trade security at a desired price. There are 2 reasons why your limit order got executed at CMP (current market price) 1. The client executed a sell order at a price lower than CMP 2. The client executed a buy order at a price higher than CMP

Last updated on Jun 09, 2025

What is a Delivery Order?

Delivery orders are the stocks that you buy and added to your demat a/c. The client holds complete ownership of them and remains in the demat until the client decides to sell them.

Last updated on Jun 09, 2025

What is an Intraday Order?

It is an order type where the buying and selling of stocks takes place within one trading day. If a client fails to do so, the position will be squared off by the broker or converted into a delivery trade.

Last updated on Jun 09, 2025

What is a Market Order?

In a market order, you can buy/sell securities at the current market price. Market orders generally work on supply and demand and guarantee quick execution. These are useful when the price is critical. While market orders guarantee quick execution, slippage can be a potential risk. Let's understand slippage: when markets are volatile your intended execution price to buy/sell a stock will differ from the actual execution price.

Last updated on Jun 09, 2025

How come I need to purchase the contracts after the stock options expire?

If your stock options contract expires in ITM (Profit), you will have to purchase your contracts. As a result, if you are not interested in purchasing the contracts and trading them, it is recommended that you sell them before they expire.

Last updated on Jun 09, 2025

Why did my order get rejected with a message ‘member not allowed to place an order in this script’?

This message means that the selected stock is restricted from trading.

Last updated on Jun 09, 2025