Back to Stocks Basics💹😇

Difference between a limit order and a stop-loss order: 🌟🌟A limit order sets a maximum price that you're willing to pay or a minimum price that you're willing to accept on a sale, 🌟🌟 But a stop order is triggered when an asset reaches a certain price and filled at the next available price.

Stop loss order: A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. 🌟🌟🌟 A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%.

Limit Order: A limit order in the financial markets is a direction to purchase or sell a stock or other security at a specified price or better. ⭐️ ⭐️ This stipulation allows traders to better control the prices at which they trade. 👉👉 A limit can be placed on either a buy or a sell order:

Bracket Orders: Bracket order (BO) is a type of order where you can enter a new position (intraday only) along with a target/exit and a stop-loss order. ⭐️ As soon as the main order is executed, the system will place two more orders (profit-taking and stop-loss). 🌟When one of the two orders (profit taking or stop loss) gets executed, the other order will get canceled automatically. 👉👉BO was popular with customers mainly for higher intraday leverages which were possible as every position had a mandatory stop-loss order.

GTT order: The Good Till Triggered (GTT) feature is an order that stays active until the trigger condition is met. 🌟🌟🌟The validity of the trigger is one year. A limit order is placed and executed if there are sufficient funds in the Zerodha account. A notification is sent to the registered email ID and mobile device every time a GTT is triggered and an order is placed on the exchange. 🌟🌟🌟The trigger is valid only once 👉If the order is triggered and placed but not executed, the GTT order has to be placed again.

Cover Order: A Cover Order (CO) is an order with an in-built risk mitigation mechanism. A cover order combines a market order or limit order with a stop loss order, ensuring that the maximum potential loss is known in advance if the trade moves against the trader. 🌟 The purpose of cover orders is to reduce the risk for both the broker and the trader while also allowing the trader to leverage their positions more effectively.

Pre-market order:(explained as per Indian exchange ) : It is conducted between 9:00 AM to 9:15 AM on NSE and BSE. During the pre-market session for the first 8 minutes, i.e. between 9:00 AM and 9:08 AM, orders are collected, modified, or cancelled by the exchange. 🌟🌟 Clients can place limit orders or market orders during the order collection window in the pre-market session.

After Market Order: After Market Order (AMO) is a sort of order that can be placed after regular trading hours and is executed once the market opens. 🌟🌟AMOs are particularly useful for consumers who are unable to actively monitor the markets during regular trading hours.

New tax rules will come into effect across India from tomorrow. 🌟🌟New Tax regime will become default option from tomorrow. Upto 3 lakh - 0 3-6 lakh - 5% 6-9 lakh - 10% 9-12 lakh - 15% 12-15 lakh - 20% 15 lakh & Plus - 30% ✨✨✨Under New Tax Regime, taxpayers no longer need to maintain a track record of travel tickets and rent receipts.

A diamond top formation is a chart pattern that can occur at or near market tops and can signal a reversal of an uptrend. 🌟Diamond top formations are generally uncommon. However, when they do form, they can be a strong indicator for an impending reversal of the current uptrend. This pattern occurs when a strong up trending price shows a flattening sideways movement over a prolonged period of time that forms a diamond shape.