What are the different Product Types to be used while trading?

Published Oct 17, 2024

Refer to this useful Video regarding
Order Types: Limit Order, Market Order, Stop Loss Order (SL), Stop Loss Market Order (SLM) and
Product Types: CNC (Cash and Carry), MIS (Margin Intraday Square Off), NRML (Normal Product type for Carryforward)

Watch video on YouTube

Every order that you enter must have a product type, based upon your trading pattern or what position you wish to take.

The product types are as mentioned below :

Kindly note that in the ‘Day’ option will be selected under Validity.

However, IOC (Immediate or Cancel) can be a better option for traders placing market orders with a large quantity, as it reduces impact cost associated with executing large orders in the market.

Choose the appropriate validity option based on your trading strategy to optimize costs and execution.

• DAY – A Day order, as the name suggests, is an order which is valid for the day on which it is entered. If the order is not matched during the day, the order gets canceled automatically at the end of the trading day.
• IOC – An Immediate or Cancel (IOC) order allows us to buy or sell a security as soon as the order is released into the market, failing which the order will be removed from the market. Partial match is possible for the order, and the unmatched portion of the order is canceled immediately.
• Disclosed Quantity (DQ)– An order with a DQ condition allows us to disclose only a part of the order quantity to the market.
  Example: If you place an order for 1000 units with a Disclosed Quantity (DQ) condition of 200, it will work as follows:

1. 200 units are displayed to the market at the beginning.
2. Once 200 units are traded, the system automatically releases another 200 units into the market.
3. This process continues until the entire order of 1000 units is fully executed.

Note:
The Exchange may impose a minimum disclosed quantity requirement from time to time. This means the minimum number of units that can be exposed in the market at any given point may change based on Exchange rules.

Related Articles

• What are Cover Orders? How do they work?
• What are Bracket Orders ? How do they work ?
• Understanding GTT Orders and How to Place Them on the Stocko App
• Understanding Iceberg Orders and How to Place Them on the Stocko App