Suppose if I want to buy a stock which is hitting upper circuit daily and I want my order to get placed first at 9.00am.
I know that the close price yesterday is 100rs and today the circuit limit is 105rs.
Which order should I place so that the chances of execution are higher?
Is it MARKET order or
LIMIT BUY order at 105rs?
I read in NSE webiste that limit order gets first preference. But since the market and limit buy prices will be eventually same will the order type matter?
Link : https://www.nseindia.com/products-services/equity-market-pre-open
Can somebody please reply?
@lokeshad101
I have not tried a trade during Pre-market. I have been very curious on Pre-market mechanism and how the orders get assigned. It is explained by NSE here.
Yes, Market order is a better choice than limit order. There is a slight difference, since this Market order would be At The Open. Like everything else in life, you have make the market come to you with limit orders… atleast most of the times.
Market order has better chance of execution since it will get matched with sell order at any price while for Limit order to execute price will have to come to that point to get the match.
Right. But I’m more interseted in the scenario I specified.
Since I know price of the stock doesn’t go beyond 105, I wanted to know if limit order does get higher preference
as it’s mentioned in the link https://www.nseindia.com/products-services/equity-market-pre-open that limit order will be matched first.
Right. I’m more interseted in the scenario I specified.
Since I know price of the stock doesn’t go beyond 105, I wanted to know if limit order does get higher preference
as it’s mentioned in the link https://www.nseindia.com/products-services/equity-market-pre-open that limit order will be matched first.
There is no preference to any specific order type. The article just says in Pre-market, Limit-Order will be matched with Limit Orders and Market Orders will be matched with Market-Order.
It’s up to you which order you want to use.
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Its clearly “LIMIT ORDERS” are getting preferential treatment, before “Market Orders” queue kicked in, during the PREMARKET session. This is EXACTLY what is mentioned in the NSE web page, mentioned by the questioner.