for example,
i want to buy the reliance shares for rs say 1300 , the quantity i want to buy is say 12000, so can the buy order be fulfilled on this buy price for this quantity for such bulk amount.
and what about selling price , say now, i want to sell at the price of 1350, so can i get all my shares of 12000 quantity be sold at 1350 price at once or it will depend on the no of quantity available in the market, do i need to check the market depth for the same for checking availability of the shares.
- Check market depth to ensure that your price is even feasible. If market is trading at 1100, then you might have to wait for sellers/buyers @ your price (1300) before being able to do the transaction.
Also check the avg volume on the exchanges website or any other 3rd party website.
Roght now, on money control.com, RIL 30-day avg volume is around 78lak shares.
Considering that, in terms of volume your order of 12000 is not a significantly big order.
- Put a limit order for rs1300/share.
then your order will be filled @ rs1300 / shares.
But your order MAY get filled in multiple transactions, as your order will only be executed when someone is selling shares @ 1300/share.
If its below or above that price, then your order will not be executed.
However, all shares will be purchased at your limit price of 1300.
If on the other hand, you want the shares NOW, RIGHT NOW, AND there’s not enough sellers selling quantity you want @ price that want, then:
- You buy at market price.
Market price is not recommended, as there are sometimes fluctuations in the market, and if you’re NOT careful, then your bottom line might end up getting screwed.
I’ve seen during trades, sometimes market order fills at reasonable prices. Like 10 shares sold at 89 rs, another 10 shares sold @ 89.20 rs etc
But sometimes, there are huge fluctuations, and it makes no sense to open yourself up to this risk.
Same applies to selling.
Nithin ji/ any other exp traders, any further insights?
Any holes in my explanation above ?