Discuss the various kinds of orders which stock broker may receive

Following are the important kinds of orders. Fixed price order, market order, open order, Discretionary orders, An immediate order and stop loss order.

1. Fixed Price Order :-
When the client gives instructions to the broker that certain shares should be purchased at a fixed price indicated in the order, it is called fixed price order.

2. Market Order :-
This order is called at best order. In this order specified price is not mentioned. But it is executed immediately at the best obtainable price.

3. Open Order :-
In this order time limit is not declared by the client that when his order should be executed.

4. Discretionary Orders :-
In this order client allows the broker to purchase the securities according to his own thinking keeping in view the reasonable price.

5. An Immediate Order :-
This order is executed at once at the best possible price by the brokers.

6. Stop Loss Orders :-
A client places this order to protect himself from the heavy fluctuations in the prices of shares. For example investor wants to dispose of his shares which were bought at Rs. 100. He may instruct the broker to sell 90 shares of Reliance Insurance at Rs. 80 stop. Now the loss client will stop at Rs. 20 per share. By replacing the order he has saved himself from the loss excess than Rs. 20.