Trade Orders Made Easy5 min read
Tired of executing complicated trade orders on other trading platforms? Paytm Money is here to simplify the process and make it accessible to all. It’s time to stop lagging and jeopardizing your profit and loss statement. Let’s break down this simple trade order flow with our expert, who is here to answer all of your questions!
Hey 👋 I am just curious to understand how to place a market order!
Sure ✔️, you can place a market order on Paytm Money in just two clicks. Just enter the quantity of stocks you want to purchase and click on the “Buy” button at the bottom.
Note: The market price is the price of the stock on the exchange at the moment.
Now, how do I place an order that will only be executed at the price I specify?
It’s easy ✔️, you can place a Limit Order → Simply click on the Custom Price button as shown below and enter the desired price and quantity.
That was simple!! What if I tell you that I need more control over my order in order to manage losses?
Sure 🤜, you can do it by placing a Stop-Loss order. Actually, there are two kinds of Stop-Loss orders:
- Stop-Loss-Market (SL-M): All you need is
- Trigger Price: At which your order will be triggered and we will send it to exchange for order execution at the market price.
Let’s take an example: Suppose you placed a Buy SL-M order with a trigger price of INR 1,139.40; now, whenever the stock price reaches INR 1,139.40, your Buy order will be sent to the exchange for execution at the current market price. The market price could be greater than INR 1,139.40 or less than or equal to INR 1,139.40.
- Stop-Loss (SL): Here, you have to mention two price levels, one is trigger price and the other is limit price.
- Trigger Price: The price at which your order will be triggered, and
- Limit Price: Once an order is triggered, it is sent to the exchange for execution at the Custom price specified, and once this price is reached, your order is executed on the exchange.
For instance, suppose you placed a Buy SL order with a trigger price of INR 1,139.40 and a limit price of INR 1,140. As soon as the stock price reaches INR 1,139.40, your order will be sent to the exchange for execution at the limit price of INR 1,140.
I heard about Cover Order as a way to reduce the losses 😶🌫️, how can I place cover orders on Paytm Money?
It’s easy to place a Cover Order on Paytm Money! All you need is –
- Choose cover order and place either Market order or Limit order as described below.
- Next, you need to put a Stop-Loss order, Trigger price and you are all set to click on the “Buy” button.
Ok 👌, that’s again easy to understand 😊, but now I want to manage my profits and losses more cautiously. What else should I know?
Don’t worry, we’ve got you covered 👍 – We have another offering in the name of Bracket Orders (BO). This is used when you are looking to limit your loss and lock in the profit.
- In the case of Buy Order:
Your Buy order is bracketed by one stop loss-Sell order on the lower side to manage the Loss and another sell order on the upper side to book the profit.
- In the case of Sell Order:
Your Sell order is bracketed by one stop loss-Buy order on higher side to manage the Loss and one Buy order on the lower side to book the profit.
Once you place a Bracket Order, three orders are created!
In the bracket order, when the first leg (bracket order) is executed, one of the other two orders is executed as soon as the triggered price is reached, and the remaining order is automatically canceled.
Example: You want to place a Buy bracket order with price INR 1,120, with the target price of INR 1,130 and stop loss price of INR 1,110.
On Paytm Money, users can do it by entering the Stop Loss and Target price as the incremental or decremental range on top of the Buy price INR 1,120, and in the above case, it will be INR 10 for each.
So, if a Buy BO order is executed with INR 1,120, either the target price Sell order will be executed at INR 1,130 if the market rises or the stop loss Sell order will be executed at INR 1,110 if the market falls.
Below is the case when Buy bracket order is placed at Market Price.
Note: Above, we have taken Buy orders as an example to describe order placement under different scenarios. Similarly, you can also place corresponding sell orders on Paytm Money.
Remember that Cover and Bracket orders are only available for intraday trading; all other types of orders are accessible for both intraday and delivery trading.
Conclusion: The above depiction of how orders are placed on Paytm Money with screenshots is going to help investors/traders easily place any kind of order and understand how different acronyms across capital markets are incorporated here on Paytm Money. Please keep in mind that the above examples are from Buy orders, but similar flows are also available for Sell orders.
Disclaimer- Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete Terms & Conditions and Disclaimers visit: https://www.paytmmoney.com/stocks/policies/terms
Blog By: Arvind Yadav | Deputy General Manager | Product