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With rising financial awareness and easy access to online trading platforms, more Indians are actively participating in the stock market. But before placing your first trade, it’s crucial to understand the different order types in the share market.
Each order type in share market will enable you to apply better efficiency in trade execution, manage risk, and pick the right approach toward your investment goals. The foundation will thus ensure that at no time will you make uninformed decisions, simply guessing your way while buying or selling stocks.
Key Takeaways
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Market and limit orders determine whether a trade is executed immediately or at a specific price.
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Stop-loss, GTT, and AMO commands enable automating entry and exits while mitigating risk.
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IOC and day orders differ in terms of how long they remain active in the system.
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The terms delivery, intraday, and margin describe how trades are settled and funded.
Also, check out Types of Stock Market Trading here
What is an Order in the Stock Market?
In simple terms, an order in the stock market is something you instruct your broker to carry out, either to buy or to sell a certain security at some particular price or condition. It is an instruction telling the trading platform what to do and how to do it.
In the same way, different order types are categorised to help investors trade efficiently. You will also find various options for order types on any modern trading application. Understanding these order types ensures that you are placing trades accurately according to your strategy, risk appetite, and market outlook.
What are the Types of Orders in the Stock Market?
In the stock market, investors can choose from several types of orders in stock market that decide how and when a trade gets executed. Understanding these order types ensures better control over price, timing, and risk when placing buy or sell orders. Here’s a detailed overview on them:
Market Order
Market order is an order to purchase or sell a certain stock, immediately at whatever is the best price available at that current moment. It prioritises speed over price control and hence finds applications in highly liquid stocks where the prices do not fluctuate drastically.
Traders often use market orders when quick execution matters more than securing a specific price. In turbulent markets, the final execution price may be slightly different from the quoted price, making it important to use this type of order by taking into consideration possible slippage.
Limit Order
A limit order allows you to buy or sell a stock at a specific price, known as the limit price. It gives you full control over the price at which your order is executed, making it ideal for traders who prioritise price precision over speed.
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A Buy Limit Order executes at the limit price or lower.
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A Sell Limit Order executes at the limit price or higher.
Limit orders help avoid unwanted price fluctuations, especially in volatile or low-liquidity markets. While they offer better price control, they may remain unexecuted if the market never reaches your set price.
Now let’s take a look at some special order Types.
Stop-loss Order
A Stop-loss order helps you limit your losses by exiting a trade if a specified trigger price(the specific price at which your buy/sell order becomes active for execution) is reached.
Stop-loss Market order
In this case, once the trigger price is reached, the Stop loss order gets converted into a Market order.
Stop-loss Limit order
In this case, once the trigger price is reached, the Stop loss order gets converted into a Limit order.
Trailing Stop loss order
A Trailing Stop-loss is an order that lets you set a maximum value or percentage of loss you can incur on a trade. If the security price rises or falls in your favor, the trigger price jumps with it at the set value or percentage. If the security price rises or falls against you, the trigger price stays in place.
Robo Order
A Robo order is a multi-leg order used in intraday trading, which allows you to place two more orders along with the initial order. This order type can be used to book profits at specified target prices as well as to minimise losses at a trigger price. Robo orders can be used for both buy and sell orders.
Case 1: If the initial order is a Buy order, then both the target and Stop loss orders will be Sell orders.
Case 2: If the initial order is a Sell order, the other two orders will be Buy orders.
Placing a Robo order, investors can save time, book profits as well as minimise losses.
For instance, you want to buy shares of the Company XYZ at ₹1,000 and want to book profit at ₹1,050. However, you fear that the price might drop drastically if it falls below ₹990. So, to counter this you place a Robo order with:
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An initial Buy order at a limit price of ₹1,000
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A Sell order with target price at ₹1050
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A Stop-loss Sell order with trigger price at ₹990.
Once the Limit order is filled and any of the 2 following orders is triggered and executed, the remaining order will automatically get canceled.
In the above case, if the Limit order at ₹1,000 is executed and the market moves in favor of the investor and hits the target price of ₹1,050, the Target order is triggered and executed, the Stop loss order will be automatically canceled.
The Robo order also comes with a unique feature where the client can trail his losses to minimise his losses and generate the best returns out of every trade. Suppose in the above order if the client places a Trailing Stop Loss order of ₹1; whenever the stock price of XYZ goes up by ₹1, the stop loss also goes up by ₹1. However, the stop loss remains unchanged if the price goes down.
You can place any of the above orders under the following product types provided by Angel One.
Delivery Order (Also Known as Cash & Carry or CNC)
A Delivery (CNC) order involves purchasing shares and getting them transferred to your Demat account for long-term holding. Once you buy the shares, they remain yours until you decide to sell them after days, months, or even years later. CNC orders require full payment, involve no leverage, and are aligned with traditional investing rather than short-term market speculation.
This order type is suitable for building a stable portfolio, avoiding the stress of real-time price movements, and participating in dividends, bonuses, rights issues, and other corporate benefits. Investors who prefer long-term wealth creation rely heavily on CNC orders because they promote disciplined ownership rather than rapid turnover.
Example: You purchase 20 shares of ABC Ltd at ₹300 and choose CNC. These shares get credited to your Demat account and stay with you until you voluntarily sell them later at a price of your choice.
Margin Order
A Margin order allows you to buy stocks by paying only a portion of the trade value, while the remaining amount is funded through temporary credit. This increases your buying power, enabling you to take larger positions even with limited capital. However, margin magnifies both profits and losses, making it important to use this facility with caution.
Since you are borrowing funds, interest or charges may apply depending on the broker’s policy. Margin orders are generally permitted for delivery-based trades using a specialised mechanism called the Margin Trading Facility (MTF), and they do need to maintain the required margin throughout the trade's period. If prices move unfavorably, the system may prompt you to add more funds to maintain your position.
Example: If you want to buy shares worth ₹80,000 but only have ₹20,000, a margin facility may allow you to complete the purchase by funding the remaining ₹60,000. If the price rises, your returns amplify; if it falls, losses grow faster too.
Intraday Order
An Intraday order is used when you intend to buy and sell the same stock within a single trading day. These orders must be closed before the market closes; otherwise, the system automatically squares them off at the scheduled cut-off time. Intraday orders usually provide higher leverage as the positions are not carried forward.
This kind of trading focuses on small price movements and involves rapid analysis, fast execution, and constant monitoring. Of course, this would also involve being more careful with risk management to avoid losses due to rapid price swings.
Example: You buy 100 shares of XYZ at ₹150 in the morning expecting a rise. If the price moves to ₹153 later in the day, you sell to capture the intraday profit. If you forget to exit, the system automatically squares it off before the market closes.
Immediate or Cancel (IOC) Order
An IOC order tries to execute instantly the very moment it is placed. The quantity that can be immediately executed gets filled, while the rest automatically gets cancelled. The main attributes of IOC make it ideal for situations in fast-moving markets.
IOC helps traders avoid waiting for full order completion and is especially useful when trading larger quantities or when volatility is high.
Example: You place an IOC order for 200 shares of PQR. If only 120 shares are available at your price, the system executes those immediately and cancels the remaining 80 shares without waiting.
Day Order
A Day order is valid for the entire trading session. This type of order is filled anytime during market hours when the market reaches your price. If it is not filled by the market close, the order automatically expires.
Day orders are flexible and suitable for regular buy or sell orders where immediate execution is not necessary. Traders place the order and go about their day, sans constant market checking.
Example: You place a Day order to buy 50 shares of LMN at ₹500. If at any point during the session the stock touches ₹500 and matching orders are available, your order gets executed.
Good Till Triggered (GTT) Order
A Good Till Triggered (GTT) order lets you set a trigger price and a limit price in advance. The order stays inactive until the stock hits the trigger price; once triggered, it becomes a limit order. This makes GTT useful for long-term planning, swing trading, and automated entries or exits without constant monitoring.
GTT orders are particularly effective when you are waiting for precise price levels—either for buying dips or booking profits. These orders come with validity periods and expire only when triggered or when the validity lapses.
Example: A stock is currently trading at ₹950. You want to buy only if it drops to ₹900. You place a GTT order with a trigger at ₹900 and a limit at ₹898. If the stock hits ₹900, your order is activated automatically.
After Market Order (AMO)
An AMO allows you to place orders outside market hours, meaning late at night, early morning, or anytime the market is closed. These orders are kept in a queue and are executed automatically with the beginning of the next trading session.
AMO is convenient for those individuals who either have tight schedules or prefer to plan their trades calmly, without intraday fluctuations. It thus supports disciplined trading, wherein investors can set their target prices in advance and avoid impulsive decisions during the volatility of the market.
Example: If the market closes at 3:30 PM and you decide at 9:00 PM to buy 30 shares of DEF at ₹420, you can place an AMO. Your order is sent to the exchange at the next market opening.
Also, check out Types of Stocks here.
Conclusion
Understanding the types of orders in stock market is essential for every trader and investor. Each order type—Market, Limit, Stop-Loss, Intraday, Delivery, Margin, IOC, Day, GTT, and AMO—serves a specific purpose and offers a unique level of control, flexibility, and risk management. Whether you are a long-term investor or an active intraday trader, making the right order selection puts you in control, removes emotion from your decision-making, and lets you trade with confidence.