Saturday, March 15, 2014


Hi I am new to share market. I want to know how to use Limit Order. can you explain with an example. suppose I want to buy ONGC @298/- with limit order. 
The limit order will be triggered when the price reaches 298/- on that day and say for that day ONGC was closed @ 294 (below 298 limit order price). 
Then i would like to know at what price the transaction will takes place. ie @ 294 or 298 ask by Ramkrishna S 
1. In stock market we put 2 type of orders first is market order second limit order. 
2. When we put a market order then it execute immediately at currant market price for example you want to buy Country club ltd at CMP then if you put order during market hours then order will be executed at currant market price. 
3. Market order will be put only during market hours. 
4. Limit order will put any time even if when stock market is closed you can put limit order. 
5. Limit order always below the last traded price for example in ONGC last trading price is 298 then you can put limit order like 297 296 295 etc but order above last traded price like 299 is not allowed. 
6. It is no matter that at what price particular stock is closed because when you put limit order at 298 i think that time ONGC was traded above 298 and when stock fall your limit order is executed at 298 and after that stock close at 294.


  1. Hello sir,

    Im Jayasri from Tamilnadu and i just started working on shares to invest and
    opened account in zerodha discount brokerage firm. While suffer in net i came across ur blog. Its really good. Since i have no big amount of investment money. im planning to invest on penny stocks first. I got a doubt, i felt you can
    give better clarification. In NSE i seen order book of one company. In that Buy order is for rs.0.50 in 3crore volume and seller order for rs.1 in 10 lakh volume. here no buy order match the sell order, then how trading take place? Because it showed total traded volume is nearly 7 lakh in a day. In intraday if i buy & sell @ nxt moment in market price with profit does the order wil get execute without match in order for buy & sell. Please give me guideline to identify the penny stock liquidity for safe buy & sell.

    1. Total volume is a sufficient criteria for show stock liquidity order book of a stock is change every second and if no buy order match the sell order, then no any trade is take place visit my penny share blog for more detail about penny stocks regards


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