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The stock market is more than just numbers flashing on a screenu2014it is a dynamic marketplace where traders and investors make decisions every second. One of the most overlooked aspects of successful trading is understanding the different types of stock market orders.
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Introduction The stock market is more than just numbers flashing on a screen—it is a dynamic marketplace where traders and investors make decisions every second. One of the most overlooked aspects of successful trading is understanding the different types of stock market orders. Many beginners jump into stock trading without knowing how orders work. They assume that clicking “buy” or “sell” is all it takes. However, the reality is very different. Using the wrong type of order can lead to losses, missed opportunities, or unnecessary risk exposure.
Difference Between Order Placement and Order Execution What is a Stock Market Order? Order Placement = You submit an instruction (buy/sell). Order Execution = The exchange successfully matches your order with a counterparty. A stock market order is an instruction given by a trader or investor to a broker to buy or sell shares at a specific price or condition. Think of it as a command you give to the exchange through your broker. This distinction is crucial—just because you placed an order doesn’t mean it will always execute.
Speed • Simplicity • Liquidity Advantages of Market Orders Ideal for highly liquid stocks like Reliance, TCS, or HDFC Bank. Easy for beginners who want instant results. Fastest execution available
Slippage Risk In volatile markets, the price may move quickly before execution. Disadvantages of Market Orders No Price Control You get whatever price is available.
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