InvestorQ : As a trader, how important it is choose the right order type?
seema Upadhyaya made post

As a trader, how important it is choose the right order type?

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3 years ago
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If you are an intraday trader or a short term trader, the cost of trading matters a lot. One of the ways to reduce your cost of trading is to place the right kinds of orders. Therefore the level of entry and exit must be properly timed. Normally, it is not possible to enter the bottom or exit at the top and that is where the order types come in handy. Based on your expectations and your requirements, the order type can help you get the best price. But placement of orders is not just about entry and exit levels. It goes beyond to also cover the type of orders you put and how you tweak it to the market conditions. While a market order is placed to be executed at the best available price and quantity, the limit order defines the price for execution. The limit order will only be executed if the price is the limit price or better, not otherwise. This is the most basic rule you need to follow.

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