What is disclosed order quantity?

In normal orders, the entire order quantity is disclosed to the market. But order with a disclosed quantity allows the investor to disclose only a part of the order to the market. For example, Mr X wants to buy 100000 shares of a stock at the prevailing market price. If […]

What is the validity of an IOC order?

IOC is referred to as ‘Immediate Or Cancel’. These orders get executed as soon as they are sent to the exchange, failing which they get cancelled. These orders do not remain pending in the system until a suitable match is found. In case, only a portion of the order is […]

What is a trailing stop-loss order?

A trailing stop limit order is designed to allow an investor to specify a limit on the maximum possible loss, without setting a limit on the maximum possible gain. These orders continuously recalculate the stop-loss price at a fixed amount below the market price, based on the user-defined “trailing” amount. […]

What is a Bracket Order (BO)?

It is an order which enables the investor to place two orders simultaneously. 1) The price at which he/she would sell the investment to book profits, 2) The price at which he/she would sell the investment to reduce losses. For example, suppose MR.X has purchased shares @₹100. He would like […]

What is the stop-loss trigger price?

Stop-loss orders are designed in such a way that the order remains inactive until the last traded price reaches the limit order price. The stop-loss trigger price enables the user to define at what price the stop loss order should get activated. Once the last traded price reaches the trigger […]

What is a limit order?

A limit order is a type of order to either buy or to sell a security at a specified price. The order will either get executed at the limit price mentioned by you at the time of order placement or would not get executed at all. If the price does […]

What is the effect of a market order?

Market orders usually get executed immediately at the best prevailing prices in the market. The investor will not know the exact price at which the order will get executed while placing the order. For instance, let’s assume that the LTP of ABC stock is 100 and the Best Bid is […]

What is an auction?

An auction occurs when the seller of the shares has not made available the shares on the settlement day. To fulfil the obligation to the buyer of the shares, the exchange carries out an auction for the shares in the open market.

What is a short delivery?

This refers to a situation wherein the seller of the shares does not make the shares available to the buyer on the settlement day. This results in the buyer not getting the shares credited to his Demat account on the T+2 day.

What is Trade for Trade (T for T) segment?

Unlike in rolling settlement, scrips listed in Trade for Trade segment are settled on a trade for trade basis and no netting off of obligations is allowed. This means that scrips listed under this segment cannot be sold before they have been settled, which is on T+2.