Your order may not execute despite being successfully placed due to certain market circumstances.
Market conditions affecting execution
When extremely negative news affects a company, stock prices can rapidly decline. The stock continuously hits lower circuit limits daily, resulting in a lack of buyers willing to purchase these shares. This commonly occurs in penny stocks that lack liquidity.
When significant buying pressure and demand exist for a particular stock, numerous bids may exist, but sellers willing to trade these shares may be scarce. This can delay or prevent your order execution.
Price-time priority system
When you place orders during normal market hours, order matching follows a price-time priority system. Orders execute on a "first come, first serve" basis, similar to a queue system. If other traders have placed prior orders, your order will only execute once those preceding orders are filled.
Options to move ahead in the queue
- You can place After Market Orders (AMO) outside regular trading hour, either as market orders or limit orders. Market orders typically have a better chance of execution.
- You can place market or limit orders during the pre-market session, which begins at 9:00 AM. Pre-market orders typically give you a better chance of execution compared to AMO. However, AMO offers more convenience, as you can place orders anytime between 4:00 PM and 8:58 AM for NSE and BSE.
Despite placing AMO or pre-market orders, you have no assurance that your order will execute. This applies to all brokers.