Methods of buying and selling of shares
First you login to your trading platform which you used web based or trading software, if you use web based trading platform you can access it from your broker’s website, enter your login id and password and transaction password provided by your broker. when you use first time system ask you to change it. After successful login add script to your market watch all options are available at the top of your trading platform.
Given below are the types of orders which are used for buying and selling of shares.
Market order: When you put buy or sell price at market rate then the price gets executed at the current rate in the market. The market order gets immediately executed at the current available price.
In market order there is no need to mention the price; the shares will get executed at the best current available price.
If you wish to buy or sell shares at any specific price, i.e. market order is not suitable for you then you have to go for limit order. you can change it at order type in order window
Market order is for those who want to buy or sell immediately at the current available price.
Limit order – It’s totally different from market order. In this, the buying or selling price has to be mentioned and when the share price comes to that price your order will get executed at the price mentioned by you.
But here it’s not sure that the price will come to your limit order. most of the traders use Limit order.
In day trading you have to close all your transactions before 3.30 pm and if in case the price doesn’t reach to your limit order, your order will be cancelled after 3.30 pm and if you want to sell securities at next day you should place order again for next day.
Stop loss trigger price: Stop loss and trigger price are used to reduce the losses. If you are day trading (intraday). Stop loss, as the name indicates, save you to huge losses. for stop loss order you can set “SL Order” at order type. here you have to define price at which you can avail loss. when security price reaches at stop loss trigger price your securities are sold/buy automatically.
Here you have to keep in mind that if you purchase securities, your stop loss price should be below your purchasing price and if you short securities your stop loss price should be above your selling price.