M
Mokaru Trading
Foundation Module · 20 Min Read + Interactive Demo

Order Types:
How to Actually Buy & Sell

You've decided to invest. But when you open Zerodha or Groww and see "Market", "Limit", "SL", "SL-M" — what do you click? This module explains every order type with real examples, then lets you practice with a live simulator.

📋 What You'll Learn

  • ✓ The difference between all 6 order types used in Indian markets
  • ✓ When to use each type — and when NOT to use it
  • ✓ Why a Market Order can cost you more than a Limit Order
  • ✓ How a Stop Loss protects your capital automatically
  • ✓ Hands-on practice with a live order simulator

What is an Order?

When you want to buy or sell a stock, you don't call anyone on the phone. You send an order — an instruction to the exchange (NSE/BSE) that says: "I want to buy X shares of Y stock, and here are my conditions."

The exchange then tries to match your order with someone on the other side — a seller if you're buying, or a buyer if you're selling. The type of order you choose decides how and when that match happens.

🛒 Real-world analogy: Think of the stock exchange like a giant online auction. Your order is your bid. The type of order is like saying: "I'll pay whatever it takes right now" vs. "I'll only pay ₹500, not a rupee more" vs. "If the price drops below ₹450, automatically sell for me."
💡 Key Takeaway: The order type you choose directly affects the price you get, whether your trade executes, and how protected you are from big losses.

Market Order Buy/Sell Right Now

A Market Order says: "I want to buy (or sell) this stock immediately, at whatever the current best available price is."

You don't set a price. You just click Buy or Sell and the exchange fills your order at the best price available at that exact moment. It's the fastest order type — almost always executes instantly.

🚕 Analogy: It's like hailing an auto-rickshaw and saying "take me to the station, whatever the fare is." You don't negotiate — you just go. Fast, but you don't control what you pay.

Example

MOKARU is trading at ₹1,000. You place a Market Buy order for 5 shares. The order fills immediately — maybe at ₹1,000, maybe at ₹1,001 or ₹1,002 depending on who else is selling at that moment. You pay whatever the market offers.

✅ When to use

  • • You must buy/sell right now (news just dropped)
  • • Highly liquid stocks (NIFTY 50 stocks)
  • • Small quantities where price impact is low

⚠️ When NOT to use

  • • Small-cap or illiquid stocks (huge slippage risk)
  • • Large quantities (price can move against you)
  • • At market open (9:15 AM) — prices are volatile
⚠️ Slippage: The difference between the price you saw and the price you got is called slippage. For illiquid stocks, this can be ₹5–₹50 per share. Always check the bid-ask spread before placing a market order.
💡 Key Takeaway: Market orders guarantee execution but NOT price. Use them only for liquid stocks when speed matters more than the exact price.

Limit Order My Price or Nothing

A Limit Order says: "I want to buy this stock, but only if the price is at or below ₹X." (For selling: "only if price is at or above ₹Y.")

Your order sits in the exchange's order book and waits until the market price reaches your specified level. If it never reaches that level, your order is never filled.

💡 Analogy: You're at a vegetable market and tomatoes cost ₹60/kg. You tell the vendor: "I'll buy 2 kg, but only if you give it to me for ₹45/kg." You wait. If he agrees (or another vendor offers ₹45), you get your tomatoes. If nobody goes that low, you go home without tomatoes.

Example

TCS is trading at ₹3,900. You think it's slightly overpriced and want to buy it at ₹3,800. You place a Limit Buy at ₹3,800.

If price drops to ₹3,800

Your order executes automatically. You buy at ₹3,800 — ₹100 cheaper than the current price.

If price stays above ₹3,800

Your order stays pending. At the end of the day (3:30 PM), it's automatically cancelled (CNC/NRML).

✅ When to use

  • • You have a target buy price in mind
  • • For illiquid stocks (controls slippage)
  • • Long-term investors buying on dips

⚠️ Risk

  • • Order may never fill if price doesn't reach your level
  • • You might miss a big rally while waiting
💡 Key Takeaway: Limit orders give you full price control. You'll never pay more than you specified — but you might not buy at all if the stock doesn't come to your price.

SL Order Stop Loss (Trigger + Limit)

A Stop Loss (SL) Order has two parts: a trigger price and a limit price. When the stock price hits your trigger, the system automatically places a limit order at your specified price.

How it works — step by step

1

You buy INFY at ₹1,500. To protect yourself, you set a Stop Loss to limit your loss to 5%.

2

You set: Trigger = ₹1,430, Limit = ₹1,425. (Trigger slightly above Limit so the sell order has a chance to fill.)

3

If INFY drops to ₹1,430, the system automatically places a limit sell order at ₹1,425. You don't have to do anything.

4

If the limit order fills at ₹1,425, your loss is locked at ₹75/share (5%) — not a rupee more.

🪂 Analogy: Your Stop Loss is like a parachute on a skydive. You don't plan to use it — but if things go wrong and you're falling too fast (stock falling), it automatically deploys and slows the damage. Without it, you hit the ground.
⚠️ Gap-down risk: If a stock opens 10% lower (news overnight), it may skip past your trigger entirely. Your limit sell at ₹1,425 won't fill because the stock opened at ₹1,350. This is called a gap-down — SL-M (next section) helps here.
💡 Key Takeaway: Always use a Stop Loss. It's the single most important habit that separates disciplined traders from gamblers. Set it the moment you enter a trade — not after.

SL-M Order Stop Loss Market

SL-M (Stop Loss Market) works like SL — but when your trigger price is hit, it places a Market Order instead of a limit order. This means it will exit your position at whatever price is available — guaranteed execution, but not guaranteed price.

SL (Trigger + Limit)

  • ✅ You control the worst price you'll sell at
  • ❌ May NOT fill if stock gaps past your limit
  • → Best for normal market conditions

SL-M (Trigger only)

  • ✅ Guaranteed to execute once triggered
  • ❌ You can't control the fill price
  • → Best for volatile stocks or overnight risk
💡 Key Takeaway: SL-M is the "exit no matter what" version of a stop loss. For beginners, SL-M is often safer — it guarantees you're out of a losing trade even if the stock moves fast.

GTT Good Till Triggered

A GTT (Good Till Triggered) order is available on platforms like Zerodha and stays active for up to 1 year — unlike regular orders that expire at 3:30 PM.

You set a target price, and the system watches it for you — day after day — until the stock finally hits that price. Perfect for long-term investors who want to buy on a future dip without watching the screen daily.

🧲 Analogy: GTT is like leaving a standing instruction with your bank: "If USD ever drops to ₹80, buy $1,000 for me." You set it once and forget it. Months later, you get a notification that it executed while you were sleeping.

Example

HDFC Bank is at ₹1,700. You love the stock but think it's 10% overpriced. You place a GTT Buy at ₹1,530. Six months later, after a market correction, HDFC drops to ₹1,528. Your GTT triggers, and you get the stock at your target price — without doing anything.

💡 Key Takeaway: GTT is a long-term investor's best friend. Set your target buy price on quality stocks and let the market come to you — no daily monitoring required.

AMO After Market Order

An AMO (After Market Order) lets you place orders when the market is closed — evenings, weekends, or early mornings. The order is queued and sent to the exchange when the market opens at 9:15 AM.

💡 Analogy: AMO is like sending a WhatsApp message at 2 AM that's scheduled to deliver at 9 AM. You write it whenever it's convenient for you, but it reaches the other person (the market) at the right time.

✅ Great for

  • • Salaried professionals who research at night
  • • Long-term investors — set and go to work
  • • Reacting to after-hours news (earnings results)

⚠️ Watch out

  • • Opens at tomorrow's market price — no control over gaps
  • • Not ideal for active trading strategies
  • • AMO window: 3:45 PM – 8:57 AM (varies by broker)
💡 Key Takeaway: AMO is perfect for people who can't watch the market during the day. Research in the evening, place your order, and go to sleep — the exchange does the rest in the morning.

Which Order Should I Use?

Order Type Price Control Execution Best For
Market None Guaranteed Urgent entries/exits on liquid stocks
Limit Full Not guaranteed Buying dips, patient investors
SL Partial Conditional Protecting open trades (normal markets)
SL-M None after trigger Guaranteed after trigger Volatile stocks, overnight protection
GTT Full Conditional (up to 1 yr) Long-term buy-on-dip targets
AMO Limit price only Next day open Working professionals, off-hours research

🎮 Live Order Simulator

DEMO — No real money

Watch a simulated stock price move in real time. Place any order type and see exactly what happens when the price reaches your target. This is exactly how your actual trading platform behaves.

MOKARU CORP NSE
₹1,000.00
+0.00 (+0.00%)
Day High
₹1,000.00
Day Low
₹1,000.00
Volume
0

Place an Order

Market Order: Executes instantly at current price. No price input needed.

Pending Orders

0 orders

No pending orders. Place a Limit, SL, or SL-M order above.

Trade Log

Executed trades will appear here.

Glossary

Market Order: An order to buy or sell immediately at the best available price. No price control.
Limit Order: An order to buy/sell only at a specified price or better. May not execute if price doesn't reach your level.
Stop Loss (SL): A two-part order: a trigger price that activates a limit sell order. Protects against large losses.
SL-M: Stop Loss Market. When triggered, places a market order. Guarantees exit but not price.
GTT (Good Till Triggered): A standing order valid for up to 1 year. Activates when stock reaches your target price.
AMO (After Market Order): Orders placed outside market hours. Sent to the exchange at next day's open.
Slippage: The difference between expected execution price and actual fill price. Higher in illiquid stocks.
Trigger Price: The price that activates a Stop Loss order. Set it slightly above (SL-M) or above (SL) your limit price.
Order Book: A live list of all pending buy and sell orders at various prices. Market orders eat into the order book.
CNC / NRML: Product types. CNC = Cash and Carry (delivery trades, no leverage). NRML = Normal (F&O positions held overnight).
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