How To Buy Shares In Share Market For Beginners and Types of Orders In Stock Market By CA Rachana

Hi guys CA Rachana Ranade here and
I welcome you all to my next lecture on ‘Basics of Stock Market’ what I’m trying
to do now essentially is that I’m sure by now everyone knows that I already
have an entire lecture series 11 lecture series on ‘Basics of Stock Market’ I am
trying to give more concepts through YouTube which might or might not be
covered in that 11 lecture series or even if they are covered in the 11
lecture series maybe I’m 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 even on YouTube now so today’s topic which I
plan to do is what I will tell you in minute but first let me tell you what we had done in the
previous video on basics of stock market I had talked about a very very important
concept which comes up during the account opening from account opening
phrase or phase I should say that is the concept of power of attorney very few
people I came across who actually knew exactly what is power of attorney there
was a concept of a power of attorney which we had discussed in the previous
lecture so if you have not watched that video you can find it here do watch that
first and then move on to this video because it’s a very nice sequence that
we are talking about 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 make a video 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 I would like to thank up stocks for sponsoring this
video so let’s check the portal of up stocks what you can see on the screen
I’ll 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 fee and
immediately it has given me certain of options for entry whether I want to
check out the NSC cup rice or Bombay Stock Exchange so let me check NSC the
moment I’ve pressed in fee NSC 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
whether I’m gonna sell so let’s say I am placing a buy order for envy so I’ve
clicked on by 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 mo which is an after market order this typically gets placed after 3:30
the next one is a cover order and the fourth one o CEO is one cancels other
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 or for further
options broadly to only one is a market order one is like a limit price order so
the 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 bug 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 so let’s say I want to bug in now being a girl you
know that comes in built that I have to bug in 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 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 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 okay what is
stop-loss limit what is stop-loss market these are very very no intense
terminologies for that you can buy my basics of stock market lecture series in
which I have explained almost for 45 minutes what is the exact difference
between stop at stop loss limit and stop-loss market or the next position is
either delivery or intraday delivery is that you buy the shares and it goes into
your d-mat 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 the delivery a
position type as an intraday okay gif basically talks about again one more
concept time and force is the full form for that either it’s day or it is IOC
day means what 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 what 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 what is ioc is is like Bajirao singham’s style are
bigger be image it or cancel you you don’t have time to even wait for one
minute or two minutes that’s an IOC the style of an order okay
so 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 see I feel that if you are a good investor if you are 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 though 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 okay so assume that I feel that I don’t want
to go beyond 10 rupees as a stop loss okay 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 okay 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 so I
just quickly show you a demo for that assume one quantity have to buy 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 yes
800 okay then you have types of stop losses as well one is a regular
stop-loss one is a trailing stop loss again complex terms but maybe we can
have a separate video on what is the trailing stop loss because I think that
deserves separate ten-minute discussion 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 of now I feel understanding the concept
of stop loss and a target cell at the same time makes sense now
why is it called as one cancels other let’s understand anything a very simple
way see them 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 okay what happens on a contrary situation as a
contrary situation let us say instead of 80 hitting 800 it hits 750 unfortunately
then what happens 750 Tony Tony oh so my sale price will be executed at 750 this
800 rupees will get automatically cancelled in this scenario right so
either this price gets hit or that price head gets hit whatever gets hits
whatever gets hit first the other will get automatically cancelled that is why
I feel that this Osio one cancels other is a very good type of order which up
stocks has in its total so if I were to place this I just say by 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 say
bye okay see the moment I say bye then you can see here you have few more times
here orders positions I’ll not show you what are my holdings okay I’ll just go
to orders in orders you will say you will see that the status of this order
is open and I’ve put a by for that the price is 760 I don’t want this top to be
bought right now let us say so what I can do is I just check this okay and
then I have this option of cancer 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 okay the entire purpose of this video was just
show you that what are the different types of orders as of now after seeing
my various lectures on stock market I have received so many comments which say
that now we are pretty confident we want to buy some stocks we would like to buy
some stocks then how do we go ahead so that’s why I thought of making this
video on types of orders 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 do let me know your suggestions in the description box I have given you
a link for opening an account with up stocks they have some promotional scheme
going right now wherein you can open a free account with up stocks 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 and
start in my show hashtag ask Russian our show you can put your queries in the
description box as well short description box basically gives you the
link to the ask rational show and it will divert you to the community tab and
in community tab you can go on asking your questions so feel free to ask
whatever questions you have keep on your research to the highest possible place
that’s it from my side for today thanks a lot Jay you

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