Order Types (Market & Limit)

Order Types (Market & Limit)

In the dynamic world of financial trading, understanding the nuanced mechanics of order types can mean the difference between strategic investment and impulsive speculation.

Order Types

Market Orders

  • Immediate Execution: These orders are executed immediately at the current market price.
  • No Guaranteed Specific Price: While they ensure quick execution, the final price may vary.
  • Best for Urgent Trades: Ideal for situations where speed is more critical than price.

Platform Slippage

Effective risk management is essential for successful trading on the TradeX platform. This article discusses strategies for preventing slippage.

Slippage Prevention

Slippage occurs when there is a difference between the expected price of a trade and the actual price at which the trade is executed. To minimize slippage, consider the following strategies:

  • Trade in Smaller Quantities: Smaller trades are less likely to impact the market price significantly, reducing the risk of slippage.
  • Trade During High Liquidity Periods: Engaging in trades when the market has high liquidity ensures better price stability.

Slippage-Prevention Features

  • If Limited Slippage is ON, your order will only be executed if final share price is between (+/-) ₹5 of displayed price.
  • If limited slippage is OFF, your will get fully executed at any closest available share prices.

Limit Orders

  • Set Minimum Purchase/Maximum Selling Price: Define the maximum or minimum price you're willing to trade at.
  • Execution Depends on Price Conditions: These orders will only execute if the market reaches your specified price conditions, providing more control over trade outcomes.


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