Time, as we all know, is a very important factor, time has the power to change everything, there's a saying too that "Time heals everything" and a lot many other sayings as well. In a similar way, time holds an equivalent importance in the share market too. In fact, time is the most important factor, the most important determinant in the share market.
Depending upon time conditions, orders for shares and securities are of the following types -
1. DAY ORDER:
As the name suggests, such an order is valid for only one day. In simple words, a Day Order is such an order which if placed on a particular day needs to be executed on that same day. If by mistake, the order doesn't get executed on the same day, the system automatically cancels the order the next day.
Depending upon time conditions, orders for shares and securities are of the following types -
1. DAY ORDER:
As the name suggests, such an order is valid for only one day. In simple words, a Day Order is such an order which if placed on a particular day needs to be executed on that same day. If by mistake, the order doesn't get executed on the same day, the system automatically cancels the order the next day.
2. GOOD TILL CANCELLED (GTC) ORDER:
Such an order doesn't follow any time limit, in fact it remains in its state before execution till it is cancelled by its user. In other words, a Good Till Cancelled Order is one which if placed remains in the same state before execution until unless it is cancelled by its user, either the stock broker or his client, the investor.
3. GOOD TILL DAYS (GTD) ORDER:
In such an order, the user, i.e., the stock broker or his client, the investor has the liberty to select the number of days or the date till which his order remains in the system before execution. Here, the user can specify either the date or the number of days till which he wants his order to be in the system. If the order is not executed within his prescribed date or number of days, the order gets cancelled automatically.
4. IMMEDIATE OR CANCEL (IOC) ORDER:
The word 'immediate', clearly highlights the meaning of such an order. Here, once a particular share or security is listed in the system, the stock broker or investor needs to buy or sell it immediately. If he fails to do so, the order stands to be automatically cancelled by the system.
Thus, time determines everything, so any investor or stock broker needs to be cautious regarding the type of order he places.
Such an order doesn't follow any time limit, in fact it remains in its state before execution till it is cancelled by its user. In other words, a Good Till Cancelled Order is one which if placed remains in the same state before execution until unless it is cancelled by its user, either the stock broker or his client, the investor.
3. GOOD TILL DAYS (GTD) ORDER:
In such an order, the user, i.e., the stock broker or his client, the investor has the liberty to select the number of days or the date till which his order remains in the system before execution. Here, the user can specify either the date or the number of days till which he wants his order to be in the system. If the order is not executed within his prescribed date or number of days, the order gets cancelled automatically.
4. IMMEDIATE OR CANCEL (IOC) ORDER:
The word 'immediate', clearly highlights the meaning of such an order. Here, once a particular share or security is listed in the system, the stock broker or investor needs to buy or sell it immediately. If he fails to do so, the order stands to be automatically cancelled by the system.
Thus, time determines everything, so any investor or stock broker needs to be cautious regarding the type of order he places.