Types of orders for buying shares | Intraday, Delivery, Margin Orders Explained

Types of Orders in the Stock Market (Basic)

Orders
Types of Orders

There are three basic types of orders in the stock market:

  1. Delivery Order
  2. Intraday Order
  3. Margin Order
There are more advanced orders which we will talk about in our next blog. Firstly, we will study these three orders.


Delivery Order

  • If you want to buy the share and keep it for over one day, then you should make a delivery order. In this order you can keep your share for as much time as you want, there are no restrictions on it.
  • In delivery order if you sell any share you have to pay the depository participant charges to your broker. These charges apply for every delivery order when you sell it.
  • These charges are approximately around 5 Rs. to 30Rs. it varies as per your broker.
  • If I give you an example of angel broking, then it usually charges around 20-25 Rs per scrip you sell.
  • Even if made a delivery order and you want to sell your share on the current day, then you can do it but they will charge you as per the intraday charges of your current broker.
  • Angel broking offers zero brokerage on these delivery orders and only DP charges are taken because the government charges these charges and not the brokers.

Intraday Order

  • In Intraday you buy the shares of your choice and these shares get sell-off on the current day at approximately 3:00 pm, half an hour before the market closes.
  • In this order type you cannot carry forward your shares for the next day.
  • The broker sells the shares at 3:00 pm but if you want to sell before that then you can also sell on your own timing but not after 3:00 pm.
  • Charges in these orders are only the charges taken by the broker and there are no depository participant charges (DP charges) in this order type because the depository participant (CDSL or NSDL) doesn't manage your shares for over one day. 
  • The brokers charge a fixed amount for every Intraday order, approximately 20-30 Rs. per scrip.

Margin Order

  • Margin order is useful when you don't have money to buy the shares and have just a short amount of money, and you don't want to miss the current price of that share. 
  • When this situation arises, you can apply for a margin order.
  • It's more complicated than the above two orders.
  • In this order, you can buy shares for Intraday and for delivery as well. This order gives you the freedom to buy more than your balance.
  • This margin varies from broker-to-broker. For example, if you place any margin order through Angel Broking you will get a Margin of almost 48x times your own balance. i.e. If you have 1 lakh Rupees in your balance then Angel Broking allows you to buy 48 lakh Rupees of shares through the margin order.
  • They also have an interest plan on it, If you take a margin of 48 lakhs then you will be charged as low as 5% per annum that means 2.4 lakhs per year and if you calculate it as per day cost then you have to divide it by 365 and you will get 657 Rs. which means you are taking a loan of 48 lakhs and you are paying an interest of just 657 Rs. which is very low if you make a profit from those shares you bought.
  • While placing this order you should be careful about the shares you are buying because those shares go in a loss instead of profit then you are liable to pay the losses.
Note: I will release the next blog on the Advanced types of order in the Stock market and I will give the link below.

For placing such orders you will need a Demat Account, and to open one click on the link given below. It will redirect you to India's best discount broker, Angel Broking.






Location: India

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