Motilal Oswal Order Types

Having a Motilal Oswal trading account? If yes, then do you know about different Motilal Oswal order types?

If not! Then here is the information for you that help you to know not only about the order types but also how you can place those order using the Motilal Oswal trading platform.

So starting with the brief introduction of the broker, Motilal Oswal is a full-service stockbroker registered with major stock exchanges including BSE, NSE, MCX, and NCDEX thus offering its client an option to trade in different segments including equity, commodity, currency, derivative, mutual funds, etc.

To trade in the segments mentioned above, you are provided with different order types.

So, let’s get started with its understanding and start trading right away

Types of Order in Motilal Oswal

Trading in the stock market is full of risk. Isn’t it! Well, in that case, do you think that only buying and selling of stock can actually lead to profit or prevent you from the volatility of the market.

Of course not!

So, what other things to be considered? It is an order type. Understanding different trading order types provided to you by the broker can actually offer you various ways by which you can manage profit and minimize your risk.

Having an account with the broker gives you the access to use different trading platforms and eventually to place different order types explained below.

Limit order

 Starting with the limit order, it is the type of order type, in which the trader sets a specified price point at which the trade needs to be executed. 

For the buy limit order, the order gets executed at the price less or at the limit price while for the sell order, the order execution takes place at or more than the limit price. 

To understand this, let’s take an example.

So, let’s suppose that Ramesh wants to buy TCS shares currently trading at ₹980. He places the buy limit order by entering the price value of ₹965. So if the share price reaches or below ₹965 his order gets executed.

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Market order

Next comes the market order, which is the type of order in which the trader can buy or sell any security immediately. Thus, placing a market order guarantees the order execution but not the price.

Thus the buy market order is executed at the current ask price while the sell market order is placed at the current bid price.

Although market order is not a preferable order type, there are situations when the market trend reverses and goes against the prediction or assumptions made by traders. At that particular time, placing a market order is the only way left for them to minimize their losses.

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Motilal Oswal Stop loss Order

As already discussed, the stock market is highly volatile. This makes it difficult for traders to keep track of their losses. To make the process smooth, you are provided with an option of placing a stop loss.

Stop loss, as the name suggest it is the type of order that helps in minimizing the loss. So here even if the market trend reverse even you can prevent yourself from facing loss.

Get its better understanding by learning how to place stop loss order in the MO app.

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Cover order

Next to stop loss order is the cover order. It is the two-legged order where again you can minimize your losses. This order works along with the stop loss order where you can execute trade, with market order.

You can place cover order in Motilal Oswal both for long and short position.

Now thinking why to execute cover order?

There are many advantages, the top being grabbing high leverage. Since it reduces the investor risk thus offering them opportunity to reap more leverage as compared to normal order.

Other than this, since you can add stop loss order thus the risk associated with the market volatility is reduced to much extent. Thus, the trader on analyzing the risk appetite can actually makes the best use of the cover order.

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Bracket order

The bracket order is three-legged, which means it agrees to place an order (either buy or sell), the target order, and the stop-loss order. It allows the placing of the fully covered order that books the profits and covers the losses.

In short, the bracket order is basically designed to limit the loss and locking the profit by adding a bracket to your order.

Still wondering how?

Here you are provided with an option of not only entering the limit price, but also the stop loss i.e the maximum price at which you would like to buy or sell or share and the target price at which you want to buy or sell your share.

While placing Buy order, set a high target price and low limit price. Similarly for sell order set a high limit price and low target price.

Enter the stop loss to manage your losses in every order you place.

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IOC

It is a type of order type in which a trader could buy or sell the security, which immediately implements the all or part and could cancel any of the order’s unfilled portions.

IOC is the time in force orders, which the investors use to clarify the information like how long the order would be active and the order could be canceled under various conditions.

Now here the IOC order works on specific condition. Here the price condition is generally set at your discreation. Thus, you can either submit the IOC order either through limit or market order.

Wondering when to place the IOC order?

In general, as a trader, you must place the IOC order when the market is highly volatile and there is trade in high volume. Here it is important to mark, that IOC order is different from the AON order. In IOC there are chances that your partial order get executed depending upon the condition you entered.

On the other hand, AON order, also called All or None Order is executed for the whole quantity or the whole order gets cancelled.

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AMO 

Last comes the After Market Order.

So if you want to trade, but usually remain busy and can’t give time during day hours? If yes, then Motilal Oswal comes up with the solution for you.

You can now place the After Market Order using the Motilal Oswal app. In this the investor can trade even after the market session. In general the AMO can be place in between 5:00 PM to 9:00 PM to execute order in shares listed in NSE and for currency segments. 

AMO order comes up with many advantages like:

• Bringing opportunity for traders who usually cannot trade during the market hours.
• One need not to actively track the price movement of stock market.

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Conclusion

The limit order could be used by all the traders, whereas the beginners use the market order, and the most advanced traders go with the stop-loss order.

If the cost is considered, then the differentiation became easier as limit order charges the higher cost, whereas market order charges lower prices.

The stop-loss order sets no fees if not executed; otherwise, it captures the low payments.

The complexity of limit order is medium, whereas, in the market order, it is simple, and stop-loss, it became advanced.

Moving forward, if you want to trade in the above order types, you could go with Motilal Oswal Trading Platform by moving to the website and other trading platforms.

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