Using Orders In Nifty Futures Trading

An order is an instruction to buy or sell on a trading venue like nifty futures. These instructions can be simple or complicated as well as sent to either a broker or directly to a trading venue through direct market access. Some standard instructions are there for such orders.

There are orders which can be used in while trading nifty futures-

Market Orders- This is the most basic type of trade order. Market orders give instructions to the broker to buy or sell at the best price that is currently available. Order entry interfaces and most of the apps usually have bought and sell buttons to make these orders quick and easy. A market order gives you the advantage of guaranteed to get the trade filled.

Limit Orders- It is an order to buy or sell the nifty futures at a specified price or better. A limit order to buy the nifty futures can be executed at the specified limit price or lower. On the other hand, a limit order to sell will be executed at the specified limit price or higher. A price must be specified while using a limit order.

Stop Orders- The stop order to buy or sell the nifty futures becomes active only after a specified price level has been reached. The placement of stop orders is simply different from the limit orders, a stop order for buy is situated above the market and a stop order for sale is situated below the market.

Trailing Stop Order- It is a dynamic stop order that follows price on account of profit locks. A trailing stop incrementally rises in a long trade, follows the price as it climbs higher. The magnitude of the trailing stop can be defined as a percentage or as a dollar amount.

Stop Loss Orders- Stop loss is the most common application for a stop order after risk limit for trade in nifty futures. A stop loss order is set at the price level beyond which a trader would not be willing to risk any more money on the trade. for short term trading, the initial stop loss is set above the trade entry when market rises, and for long term trading, the initial stop loss is set below the trade entry when market drops.

Conditional Orders- It is the advanced nifty futures trade order that is submitted automatically or cancelled if specified criteria are met. Conditional orders must place before the trade is entered and are supposed to be the most basic form of trade automation.