You can use market, limit, and stop-loss orders on Kite to execute your trades.
- Market: A market order is an instruction to buy or sell shares at the current best available price.
- Limit: A limit order is an instruction to buy or sell shares at a specified price. The broker is instructed not to go higher or lower than the specified price.
- Stoploss: A stop-loss order is an order placed to limit losses when there is a concern that prices may move against the trade. you can choose between two types: SL order (Stoploss Limit) and SL-M order (Stoploss Market).
In addition to the above order types, you can also use Good Till Triggered (GTT) and After Market Order (AMO).
Which order has the best possibility of execution?
Market orders have a higher chance of being filled. When you place an order during market hours, it gets executed on a first-come-first-serve basis. You can place orders in the pre-market sessions or place AMO to be ahead of the queue. Despite placing an AMO or pre-market order, your order is not guaranteed to be executed. This is the same across all brokers.
Placing a market order carries the risk of potential losses due to a freak trade, while a limit order provides the advantage of price execution at a specified level, thus avoiding a freak trade but without assurance of order fill. However, you can combine the benefits of both order types, allowing for the price protection offered by a limit order (eliminating the risk of a freak trade) while still enjoying the order fill typically associated with a market order by using a
limit order like a market order
or by using
Stop-Loss limit (SL) order like a Stop-Loss Market (SL-M) order.