Posted on August 14, 2025
1. Market Order:
An order to buy or sell security immediately at the current market price.
2. Limit Order:
An order where you set the maximum price you’re willing to pay (or buy). Your order only executes at your set price or better.
3. Stop Loss:
It can be placed as a Market Order or a Limit Order. Helps protect your investment by limiting losses.
Buy Stop Loss Example:
Current Price: ₹90. You place a Buy Stop Loss Limit order: Trigger Price: ₹95 & Limit Price: ₹100
If the price hits ₹95, the buy order gets activated and executes at a price up to ₹100.
If the price exceeds ₹100, the order waits.
Sell Stop Loss Example:
Current Price: ₹100. You place a Sell Stop Loss Limit order: Trigger Price: ₹95 & Limit Price: ₹93.
If the price drops to ₹95, the sell order will be activated and executed at a price no less than ₹93.
If the price falls below ₹93, the order waits.
4. Brokerage Fees:
It is charged by your broker for buying and selling shares on your behalf. Knowing this helps you understand your trading costs.
5. Margin Trading:
Borrowing funds to trade more than your cash balance. The purchased stocks are auto-pledged to the exchange, allowing you to hold the position beyond T+5 days.
6. Diversification:
Spreading investments across different asset classes such as stocks, ETFs, bonds, mutual funds, gold, silver, or IPOs to reduce risk. Not all investment will move in the same direction at the same time.
7. Portfolio:
Your collection of investments across different asset types that should be reviewed regularly. Regularly monitoring your portfolio helps you stay on track with your goals. It shows your entire investment strategy, risk appetite, and financial goals.
8. Volatility:
How much a stock’s price moves up or down. Higher volatility means larger and more frequent price swings, which can offer more opportunities but also increase uncertainty.
Have questions? We’re here to help — just reach out anytime.
Happy Trading!
The Aditya Birla Money Team