Market Orders (MKT)

Market Orders are the most basic order type of the share trading. If you need to buy or sell typical shares at the market, what you should do is submit a Market Order.

Market Order Flow

 How:
But if you expected to execute your order, Need to consider the current market price before you submit the market order. If your order successfully executed, then it call as "Order Filled". If your is related to buy some shares, after order filled these shares updated to your account and relevant amount of money reduce from your trading account. If your order is related to sell some shares, then after order filled reduce this number of shares from your account and update your account with relevant amount of money you received  by specific trading.

Validity:
Most of the time submitted market orders valid within the whole day. After market closed for the specific day, all the so far not executed orders will be cancel and and notice to the order submitted users. If you think  share may goes up for some particulate counter,  you can submit sell orders with higher price that existing price of the market. If price goes up and reach to your submitted price, then there mat be possibility to fill your order. If you willing to buy shares and also you think market price goes down for some specific counter then you can submit buy order with less price then current existing price. If market reached your conditions, then your order may fill.

Partially Filled:
Some time market orders may reached to the price expectation but the numbers of shares not enough to full-fill the order. In this kind of situations, order execute for the existing number of shares and it call "Partially filled"

As example:

Kevin submit sell order with 2000 shares for $225 price for counter AAA
Jhon submit buy order with 900 shares for $225 price for counter AAA

So here buy order and sell orders are matching by price and quantities are not same. then order executed for 900 shares.
Then
Kevin get notice "Order Partially filled for 900 shares at $225"
Jhon get notice "Order filled for $225"

Risk Management:
If you use brokerage to submit order to the share market, then they are doing some risk check before submit your orders the the market. This checks can be vary for country by county, market by market or brokerage by brokerage. fallowing are the some factors they are checking.

1. Trader having enough money to buy the shares.
2. Order quantity is less than to min quantity or higher than the max quantity  that can trade for specific counter.
3. Is this order accept the government regulations.
4. Is this market trading hours.

Categories: Financial, Share Market, Trading

GTC Orderd (Good Till Cancelled)

IF you submit a order to today's typical market, It will expire after market closed (means after trading hours). But Some time traders need to continue this order from the next day market open. For this matter trader need to manually submit a new order with same information at next trading day and have to continue this until order execute. This is a time consuming and resource wasting matter.
After considering above requirement and to get rid of the effort that need to spend on the matter the GTC Order purposed.

GTC simply means Good Till Cancelled.

This order would not cancelled until the trader manually cancelled it. So as typical trading order, this doesn't expire after market closed. But most of the exchanges legally not support this kind of orders. But Trading brokers having some tricky methodology to implement this concept to there clients.
Most of the brokers allow clients to submit GTC orders to the brokerage and every day morning there systems take the responsibility to submit a dally order to exchange with same information. But client cannot trace the internal behaviour of the brokerage and the brokerage stem show it as a not-cancelled order to outside until client candled it. Every functionality encapsulate inside the brokerage systems, but actually everyday when market start brokerage systems submit a new order to represent clients GTC order.

Now you may think GTC orders never expired if trader would not cancelled it. But in actual case brokerage decide a expire time for the order. If trader wouldn't cancelled GTC order until the expire time, It will automatically expire and not submit to the market at next trading day. This expire time can be vary for brokerage to brokerage. Some brokerages pre decide expire date as seven days, fourteen days, thirty days from the order submit day. If order executed before expire or candled by the trader, It will process like normal order executed.

Categories: Financial, Share Market, Trading