Buy (Capital Market)

1. Exchange - To begin with, choose the exchange on which you wish to place the order.
   
   
2. Scrip - Next, choose the scrip that you wish to buy. Note! You can also right click on the scrip in Market Watch and click on Buy Now option.
   
   
3. Qty - Next, enter the quantity that you intend to purchase in this field.
   
   
4. Market - Next, enter the price at which you wish to place the BUY ORDER. To place order at the prevailing market price, do not change the value in this field i.e., keep the value 'MARKET' in this field.
   
   
5. Product Type - Next, you need to choose the product type. For delivery based orders, choose 'Cash' option from the drop down box. To trade scrip from your Margin Trading account, choose 'Margin' option. Else, to trade the given scrip for the current day only, choose 'Intraday' option.
   
   
6. Order Duration - Next, choose whether you like to place the order as ‘Good Till Day’ or as an ‘Immediate or Cancel’. Good Till Day means the order will either turn to trade successfully or else get expired at the End-of-Day (EOD). Immediate or Cancel means the order will either immediately turn into a trade or else will be cancelled.
   
   
7. Disclosed Quantity - Disclosed Quantity field is particularly useful, in case, you wish to trade the scrip in big volumes and do not want any panic reaction from the counterparties. In this field, you can enter the quantity that you want to disclose to the counterparties and the same will be visible in the order book. For example, if you place an order of 1000 shares and put the disclosed quantity as 100, then the order book will show order 10 orders of 100 each. Note! The disclosed quantity has to be a minimum 10% of the order size.
   
   
8. Trigger Price / Stop Loss - Trigger Price can be used to maximize your order profitability and to save yourself from Market fluctuation. It is a conditional order which gets activated only if a certain price level is breached. This price level is known as the Trigger Price.
   
   A client can also use this field to place a Stop Loss Order. Stop Loss Order is an order that the user places to safeguard itself against potentially heavy losses in the given order. Stop Loss can be of two types - Stop Loss Buy Order and Stop Loss Sell Order. Below are the examples of each type for your better understanding:
   
   a) Stop Loss Sell Order - Mr. X has purchased NTPC @ Rs. 145 in expectation that the price will rise. However, in case of price fall, 'Mr. X' would like to limit his losses by selling the scrip. Thus, he may place a Limit Sell Order specifying a trigger price of Rs. 135 and a limit price of Rs. 130. Do remember that the Stop Loss Trigger Price has to be between the Limit Price and the Last Traded Price at the time of placing the Stop Loss Order. As soon as NTPC Last Traded Price falls below 135, a limit order for NTPC @ Rs. 130 will get activated.
   
   
   b) Stop Loss Buy order - Mr. X has short sold NTPC @ Rs.145 in expectation that the price will fall. However, in case of price increase, 'Mr. X' would like to limit his losses by buying the scrip. Thus, he may place a Limit Sell Order specifying a trigger price of Rs.150 and a limit price of Rs.155. Do remember that the trigger price has to be between the last Traded Price and Buy Limit Price at the time of placing Stop Loss Buy Order. As soon as NTPC last traded price rises above Rs.150, a limit order for NTPC @ Rs.155 will get activated.
   
   
9. Protection Percentage - Note! This option is only available for BSE traded scrips. While placing a market order in BSE, the user can specify the protection %. Protection % indicates that the actual traded price of the order should not vary more than X % of the Last Traded Price at the time order hits the market i.e. If Mr. X has place a market order for 100 shares of NTPC specifying a protection % off 2%. The Last traded price at the time order hits the market is Rs.120, then the order will be placed as a limit order of Rs.122.4 (120 +2.4) and will get executed at the limit price or better.
   
   
10. Place Order - Once you enter details in the above explained fields, press 'Enter' key on your keyboard to place the order.
    
    
11. Confirm Order - Once you press the ' Enter' key, PIB asks you to confirm the order (screenshot given below).

Click on “Ok” button to successfully place the order.

Note!

On confirming order the system will ask for Transaction password if you haven’t entered yet after login.

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Also Read:

• How to Sell Scrips in Capital Market?
• CM Trading Menu
• Market Watch Features