1. Limit Order

• Definition: An order to buy or sell a security at a specified price or better.
• Validity: The order remains pending until it is matched with a corresponding order or cancelled.
• Example: If you want to buy 100 shares of ABC Inc. at ₹50, and the current market price is ₹51, you place a limit order. Your order will be executed at ₹50 or lower, and any unexecuted portion remains open until matched or cancelled.

2. Market Order

• Definition: An order to buy or sell a security immediately at the best available market price.
• Validity: Effective immediately and executed at the current bid or ask price.
• Example: For buying 800 shares of BHEL, if the market depth shows the best ask price is ₹80 for 600 shares and ₹85 for the next 200 shares, a market order to buy 800 shares will be executed at ₹80 for the first 600 shares and ₹85 for the remaining 200 shares. The average buy price will be ₹81.25.

3. Stop Loss Order

• Definition: An order placed to limit the maximum loss on a position by triggering a sell order once the stock price reaches a specified stop price.
• Validity: The stop loss order becomes active when the stock price hits the stop price. It remains valid until it is executed or cancelled.
• Example: If you own 100 shares of XYZ at ₹10 each and want to limit losses if the price drops, you set a stop loss with a trigger price of ₹8.50 and an SL price of ₹7. If the price drops to ₹8.50, a sell order will be placed at the best available price between ₹7 and ₹8.50.

4. TMO (Bracket Order)

• Definition: A three-leg order that includes an entry order, a profit target order, and a stop loss order. It may also include a trailing stop loss feature.
• Validity:
• Entry Order: Remains valid until executed.
• Profit Order: Activated upon reaching the target price.
• Stop Loss Order: Activated upon reaching the stop price or trailing stop loss.
• Example: You want to buy 100 shares of stock A at ₹200, set a stop loss at ₹190, and a profit target at ₹215. The TMO order will place these three orders simultaneously. If the price reaches ₹215, the profit order will be executed, and the stop loss order will be cancelled. If the stop loss is triggered at ₹190, the profit order will be cancelled.

5. TMO (Cover Order)

• Definition: A two-leg order consisting of an entry order and a stop loss order without a profit target order.
• Validity:
• Entry Order: Remains valid until executed.
• Stop Loss Order: Activated upon reaching the stop price or trailing stop loss.
• Example: If you place a cover order to buy 100 shares at market price with a stop loss at ₹190, there will be no profit target order. The stop loss order will automatically trigger if the price drops to ₹190, and a trailing stop loss can be used to adjust the stop loss as the stock price moves in your favour.

These orders help in managing trades according to market conditions and personal strategies, allowing for flexibility in executing and managing trades.