Zerodha Order Types: What are the Different Types?

Table of Contents

What are the Different Zerodha Order Types?

What are Zerodha Validity Orders?

Conclusion

Are you interested to know about the various Zerodha Order Types? When it comes to online trading, having a variety of order types at your disposal can significantly impact your ability to execute your trading strategy effectively. One of the topmost online brokerage firms of India, Zerodha has a wide variety of product types and order types on offer, in order to satisfy the varied requirements of investors and traders. These order types and product types allow you to specify the instructions and methods you want to adopt at the time of order placement, aligning them with your trading objectives.

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What are the Different Zerodha Order Types?

Know all about the different Zerodha order types and get insights into their functionalities.

1. Zerodha Market Order

When it comes to executing an order, this is the fastest and easiest way. With this Zerodha order type, you can instruct the platform to buy or sell a security at the current market price. Market orders are suitable for traders who prioritize immediate execution over price control.

Here is what you need to specify when placing a market order in Zerodha:

• Quantity
• Transaction type (Buy/Sell)

You can use market orders for both intraday trading and delivery-based trading, with or without setting a stop-loss. However, it is important to note that there is no permission for market orders placement for stock options in Zerodha.

Know about Upstox Order Types.

2. Zerodha Limit Order

This Zerodha order type offers higher degree of control on the price at which order execution is possible for you. With this order type, you specify the price at which you want to buy or sell a security. The order will only be executed at your specified price or a better one. However, there is no guarantee of execution, as the market may not reach your specified price.

During a limit order placement, you have to mention the Limit price along with the quantity and transaction type. The Limit price happens to be the price at which you want the order to execute.

Keep in mind that it is possible to transform a limit order to a market order when:

• For Buy: Your limit price is higher than the best available offer price.
• For Sell: Your limit price is lower than the best available bid price.

3. Zerodha Stop-loss Order (SL)

This Zerodha order type is aimed at helping you in reducing your losses through the placement of an order at a particular price level, also referred to as the trigger price. The stop-loss order, when the market attains this trigger price, is sent as a limit order to the exchange. It is a valuable tool for risk management.

To place a stop-loss order, you need to specify the following trade parameters:

• Quantity
• Trigger price
• Limit price

Here is a crucial rule to remember when setting the trigger and limit prices:

• For Buy Stop-loss orders: Trigger Price < Limit Price
• For Sell Stop-loss orders: Trigger Price > Limit Price

However, a trailing stop-loss order is not offered in Zerodha.

4. Zerodha Stop-loss Market (SL-M) Order

In Zerodha, it can be placed also in the form of a stop-loss market (SL-M) order. This Zerodha order type simplifies the process by requiring you to set only the trigger price, without mentioning the trade price specifically. 

Once the trigger price is hit, the order is sent to the exchange as a market order, ensuring immediate execution.

It is important to note that SL-M orders are not allowed for stock options on Zerodha is platform.

5. Zerodha After Market Order (AMO Order)

An After Market Order (AMO) in Zerodha is a convenient feature that makes order placement possible following regular market hours.  No extra charge is there for using this service, and you can place AMO orders for various segments, product types, and exchanges. This can be particularly useful if you want to prepare your orders in advance for the next trading day.

6. Zerodha Cover Order

Zerodha provides an advanced order option called a cover order (CO) that incorporates a built-in risk management mechanism designed to mitigate the potential for unlimited losses. Using a cover order entails the simultaneous placement of two distinct orders: one for a stop-loss Zerodha order type and another for a limit/market order.

While placing a Zerodha cover order, you have to specify:

• Quantity
  • Stop loss trigger
  • Price (either market or limit order)

It is important to remember that stop-loss orders placed in cover orders cannot be canceled, and COs are exclusively for intraday trading. Additionally, COs are not allowed on BSE, stock options, and currency options, and the stop-loss trigger price should be within a 10% range.

7. Zerodha Good Till Triggered (GTT) Order

Zerodha offers a unique feature called the Good Till Triggered (GTT) order, which allows customers to place GTT orders for Equity Delivery and Nifty and Bank Nifty F&O contracts. This Zerodha order type remains valid for a year or until the trigger condition is met, whichever comes first. 

GTT orders provide traders with more flexibility and control over their long-term investment strategies and are a viable alternative to Good Till Cancelled (GTC) orders. Keep in mind that GTT orders can only be availed in India from one broker, Zerodha, at the moment.

Read and find out all about Upstox GTT Orders.

8. Zerodha Basket Order

A Zerodha basket order empowers traders to simultaneously execute multiple orders. Each trader has the option to generate up to 20 baskets per client ID, each of which can encompass as many as 20 trade orders. This functionality is accessible through both the mobile app and the Zerodha Kite web platform.

Here are the steps to place a basket Zerodha order type:

1. Visit Zerodha Kite and log in.
2. Visit the Orders section.
3. Navigate to the Baskets tab.
4. Click on “New basket.”
5. Provide a name for your basket.
6. Add the instruments you wish to trade.
7. Tap on “Execute” for order placement.

What are Zerodha Validity Orders?

Zerodha offers the flexibility to set the duration for your orders, and there are two primary types of validity orders available:

1. Day Order: A day order remains active throughout the trading day, expiring at the market is close.
2. Immediate or Cancel (IOC) Order: An IOC Zerodha order type takes immediate effect upon placement, but if there is no matching order at that instant, it automatically cancels. This order type is especially beneficial when dealing with substantial order quantities.

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Conclusion

Whether you prioritize speed, price control, risk management, or long-term investing, Zerodha has the tools to accommodate your preferences and objectives. Remember to keep yourself updated with any changes or additions to each Zerodha order type. Online brokerage platforms like Zerodha continually evolve to meet the needs of their users.