Types of Orders in the Stock Market
Market, limit, stop-loss, stop-loss market, GTT, AMO, bracket and cover orders — what each does and when to use it.
The main order types
| Order | What it does | Use when |
|---|---|---|
| Market | Executes immediately at the best available price | Speed matters more than price, in very liquid stocks |
| Limit | Executes only at your price or better | You want price control (most situations) |
| Stop-loss limit (SL) | Becomes a limit order once the trigger price is hit | Limiting losses with price control |
| Stop-loss market (SL-M) | Becomes a market order once the trigger is hit | Ensuring exit, accepting slippage (not available in every segment) |
| After-market order (AMO) | Placed outside market hours; sent to the exchange at the next open | You cannot trade during the day |
| GTT / GTC | A trigger held by the broker for weeks or months | Long-term entry or exit targets |
Market vs limit
A market order guarantees execution, not price. In thinly traded stocks or fast markets it can fill far from the last traded price. A limit order guarantees price, not execution. Read the full comparison in market order vs limit order.
Stop-loss orders
A stop-loss has a trigger price and (for SL) a limit price. When the market reaches the trigger, the order is released to the exchange. Stop-losses are explained step by step in what is a stop-loss order.
Order validity
- Day – cancelled if not executed by the end of the session.
- IOC (Immediate or Cancel) – executes whatever is possible immediately, cancels the rest.
- GTT – broker-level trigger valid for a long period (commonly up to a year). Not an exchange order until triggered.
Broker-specific orders
Some brokers offer bracket orders (entry + target + stop-loss) and cover orders (entry + compulsory stop-loss). Availability changes over time, so check your broker's current platform.
Frequently asked questions
What is the safest order type?
For most investors a limit order is the safest default because you control the maximum price you pay or the minimum you receive.
Is a GTT order guaranteed to execute?
No. A GTT places an order when the trigger is hit; if it is a limit order and the price moves away, it may not execute.
Sources
- SEBI Investor website — accessed 30 September 2026
- NSE – Equity market trading — accessed 30 September 2026