Order Types and Trade Management
An exchange order has six mandatory fields — security, buy/sell, quantity, price, time condition, client UCC. Orders are classified on three axes: price (limit,...
Order Anatomy
An exchange order has six mandatory fields — security, buy/sell, quantity, price, time condition, client UCC. Orders are classified on three axes: price (limit, market, stop-loss), time (day, IOC, GTD), quantity (regular, disclosed, minimum-fill). Direct Market Access (DMA) lets institutional clients route orders directly without broker intervention.
Every order must carry: (1) Security symbol, (2) Buy/Sell, (3) Quantity, (4) Price, (5) Time condition, (6) Client UCC (Unique Client Code — 10-digit SEBI-mandated identifier). Price conditions: Limit (execute only at specified price or better), Market (execute at any prevailing price), Stop-loss (activate as market/limit when trigger is hit). Time conditions: Day (cancel if unfilled at close), IOC (Immediate-or-Cancel — execute immediately, any unfilled portion cancelled), GTD (Good-Till-Date). Quantity: Regular vs Disclosed (show only part to the market; "iceberg"). DMA is restricted to institutional clients per SEBI rules and must be pre-approved by the exchange.
Price boss — execute only at my price or better
Speed boss — execute NOW at any price
Safety net — convert to market/limit when trigger hit
Iceberg — show small portion to market at a time
A Practical Example
| Order Type | Price Behaviour | Time Behaviour | Best For |
|---|---|---|---|
| Limit Day | Execute at limit or better | Cancel at close if unfilled | Price-sensitive entries |
| Market Day | Execute at prevailing price | Cancel at close if unfilled | Urgency > price |
| Stop-Loss Market | Becomes market on trigger | Day or GTD | Risk management |
| IOC | Limit or Market | Immediate; cancel unfilled | Algo strategies, arbitrage |
| GTD | Limit | Valid till specified date | Long-horizon orders |
What Makes This Important
Frequently Asked Questions
UCC is a 10-digit unique identifier assigned by the broker to each client, mandated by SEBI for every order. It maps the order to a specific client for audit trail, margin computation and settlement.
🧠 Quick Quiz
2 questions to check your understanding