How to place order in zerodha or upstox- step by step
Hi guys, I’m Suraj from indianstocks.xyz and I welcome you all to my website on ‘Stock Market Learning’ what I’m trying to do now essentially is that I’m sure by now everyone knows the basic of the stock market.
I would like to discuss a little bit more about that so that’s how I’m trying to you know progress with my basics of stock market series, so today’s topic which I plan to do is what I will tell you in this article is how to place the order and their types.
I had talked about a very important concept which comes up during the account opening from account opening phase. I should say that is the concept of power of attorney very few people knew exactly what is power of attorney.
First we talked about how to open an account now presuming that you have opened an account. Now, the next step is how do you place an order so for placing an order you must understand that there are various types of orders.
Which you can place and there were many viewers who said that we really don’t know that exactly when to place a day order, when to place a limit order.
What are the different types of orders
So I thought let me just write article on that what could be the different types of orders. what are the meaning of that and how do you actually proceed with placing an order on the exchange?
How to place order in zerodha or upstox
I just quickly explain here you have a plus sign where you can actually add whichever stock you want to buy or sell or you just want to add it to your watch list just as an example. let me take Infosys, so I’m just typing in feed and immediately it has given me certain of options for entry.
Whether I want to check out the NSE or Bombay Stock Exchange. so let me check NSE the moment I’ve pressed in feed. NSE, it starts appearing on my screen you can easily watch it as well here.
I start getting to three options here whether I want to buy ether I’m gonna sell. so let’s say I am placing a buy order for envy so I’ve clicked on buy now.
What do you see on the screen you see there are different types of orders first of all you see the complexity tab in which you have simple or a market order. You have also see after market order this typically gets placed after 3:30.
the next one is a cover order and the fourth one OCO is that’s one type of order that they have many people also call this as a bracket order.
Okay so let’s understand what are these types of orders one by one let’s say click on simple in simple order type. you have to further options broadly to only one is a market order one is like a limit price order.
So that moment I say I want a market price order here you can see. I can’t type anything into buy price okay if this gets frozen out why because I’m saying that I don’t want to buy in whatever is the market price. I want to buy it right away but the moment. I press limit here see this becomes an editable option.
Now, I can press whatever I want to buy in now I can just take it at face so let’s say it’s the price is 771. I place an order at seven hundred and sixty rupees. Okay and if I say buy then of course it will ask me for one more confirmation but we are not here to directly buy that I’m going to show you many possible options.
Okay so in this I told you either you can place a market order or a limit order, stop-loss limit and stop-loss market these are like huge concepts.
I will just quickly tell you what is the stop-loss the word itself says that if I were to stock my losses so just an example if I were to buy this same stock at 770 rupees and assume that the market price of the share starts falling down. after I buy it and it goes down and down and down till let us say 760.
So I have already incurred a loss of was 10 or 11 rupees and I feel that that’s a maximum loss I can bear I don’t want to go beyond that then I can put a stop loss order at seven hundred and sixty rupees so what happens the moment the stock price goes down and down and it touches 760.
My stop-loss order will get executed what is the benefit the benefit is that if the stock price goes below 760 also let’s say it closes it’s 750. I’m pleased to bother about that because my position has closed at 760 only so my loss is stopped it’s capped at 760 so rupee terms may it will be stopped at 11 rupees in our example.
The next position is either delivery or intraday. Delivery is that you buy the shares and it goes into your demat account now you don’t want to sell it off on the same day. if your intention is to buy and sell it on the same day then you choose intraday. Basically, one more concept time and force is the full form for that either it’s day or it is IOC day means. assume that I had put this buy price at 760 and 24 the whole day till 3:30.
The stopper is never goes down till 760. it just you know goes up and down from 772 to 770 maybe seven six seven seventy six or seven sixty-six on the lower side but doesn’t touch 760. then the order gets automatically cancelled.
how does it get automatically cancelled. Because, the time in force is only one day so at 3:30 if the price doesn’t reach 760 your order will get automatically cancelled. IOC is is like Bajirao singham’s style are bigger be image it or cancel you don’t have time to even wait for one minute or two minutes that’s an IOC.
I hope simple all concepts are clear next one is an amo in amo again you get all the similar options so no need to discuss this same type again. CO is a cover order now what happens with the cover order let us understand I can put again.
I’d put limit price only I put a buy price at 760 but immediately. it asks me what is your stop-loss. So I feel this is the most disciplined way of putting an order. I feel that if you are a good investor or a good trader also for that matter your buy price and your stop-loss price should be very much clear in your mind.
This is more applicable for a trader rather than an investor. Because, investor is least bothered about daily movements for a short term movement. if you’re a long-term investor. it’s okay then if you don’t go for a cover order, but if you’re a short-term trader this is a must you must put in your stop losses.
So assume that, I don’t want to go beyond 10 rupees as a stop loss. so I can put what would be my stop-loss amount here or I can even place how much rupees. I am ready to take as a hit.
so that’s a cover order for you one cancels other. this is my personal favorite because, this says that my target price is this much and my stop-loss price is this watch both prices get defined at the same time.
I just quickly show you a demo for that assume one quantity have to buy price is 760. my stop-loss see again let me just define it for you 10 rupees so the moment. I pressed and here it starts showing that it means that my stop last stop-loss will be at 750.
I need not input this I just need to put how much loss I’m ready to bear okay assume that with ten rupees loss. I’m expecting let us say 30 rupees profit so I feel that today this stock should cross 800 rupees just as an example.
So I would press thirty rupees here the moment. I’m pressing thirty see 760 cut 30 arrow 760 plus 30 it automatically starts showing 790 in your target selling price.
I can change this, if I save 40 it will start immediately showing 800. then you have types of stop losses as well one is a regular stop-loss and another one is a trailing stop loss. Again its a complex terms maybe we can write another article on this.
what is the trailing stop loss? I think that deserves separate article on what is the exact terminology of trailing stop loss. how it helps you and how it can be dangerous for you as well.
So as for now, I understanding the concept of stop loss and a target sell at the same time makes sense now why is it called as one cancels other. let’s understand anything a very simple way.
assume that this target selling price of 800 is hit so today the stock reaches 800 then my buy the stock which I have bought will get sold at 800. so what happens this stop-loss order will automatically get cancelled that does not stay in the market.
What happens on a contrary situation as a contrary situation. let us say instead of hitting 800 it hits 750 unfortunately then what happens 750. My Sell price will be executed at 750 this 800 rupees will get automatically cancelled in this scenario. so either this price gets hit or that price head whatever gets hit first the other will get automatically cancelled.
That’s why I feel that this is a very good type of order. When I have click on buy now then it gives a confirmation screen. it says that one quantities to be bought at 760. the type of order is also given complexities or Co one cancels all other and I click buy. the moment I click buy then you can see here you have few more times here orders positions.
I’ll go to orders in orders you will see that the status of this order is open and I’ve put a buy for that the price is 760. I don’t want to be bought right now. so what I can do is I just check this okay and then I have this option of cancel and it asks me are you sure you wanna cancel this order.
If I say yes this order gets cancelled now you can immediately see and the status is cancelled. the entire purpose of this post was just show you that what are the different types of orders and how to place them.
Then you now types of orders and how to place them so go ahead by at least one stock of your choice do some research for that just don’t buy because I am saying it do your research by at least one stock jump into this amazing world of stock market.
How to place order in zerodha or upstox- step by step
I have given you a link for opening an account with upstocks they have some promotional scheme going right now where in you can open a free account with upstocks till 31st of August, so I feel you should grab this opportunity and start your journey in this amazing world of stock market.
Right even if you have any other queries. you can put your queries in the Comment box.