Order Matching Criteria
Order matching process is a price/
time priority order matching mechanism, where priority is given to price and
then time. Ex: Trader 'A' enters an
order of buying 100 shares of ABC @ 100 at 09:30 AM and Trader 'B' enters an
order of buying 100 shares of ABC @ 100.05 at 10:00 AM.
Here the order of
Trader 'B' will get the priority of execution over Trader 'A', but if the price
of both Traders would have been equal the time priority would have placed
Trader 'A' on top.
Types of Orders
Limit Order - An order
(buy/sell) which clearly specifies the price at which the trader wishes to trade
is known as Limit Order. DreamGains suggests "Buy Above / Sell Below" (Limit Order) strategies.
Market Order -
An order where trader doesn't specifies the prices, and wishes to buy/ sell at
the current prevailing market price, is known as Market Order.
SL Order - A
Stop Loss Order is used where the trader wishes the order to enter the system
when a certain price level occurs on the trading system. Stop loss as the name
suggests, is to stop or restrict the losses in a trade to a particular price
point. Ex: A trader has bought a
share @ 100 and decided 97 as a price point where he will exit, thereby
stopping the loss per share to Rs. 3/share.
Trigger Price -
Every stop loss order needs to put in a trigger price, which specifies the
price point where the order will enter the system and not before that.
Buy SL Order - A
stock is trading @ 100, a trader wants to buy the share above 103, he will be
putting a SL order where the Trigger Price is 103 and limit price could either
be 103 or 103.10
Sell SL Order - A
stock is trading @ 100 and the trader wants to sell the share below 97, he
would put the trigger price as 97 and limit price at 97 or 96.95.
Bracket Order -
Bracket orders are designed to help limit your loss and lock in a profit by
"bracketing" an order with two opposite-side orders.
- BUY Order is bracketed by a high-side sell limit order and a low-side sell stop order
- SELL Order is bracketed by a high-side buy stop order and a low side buy limit order
About DreamGains
DreamGains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients.
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