ORDER FLOW OF MARKET

Are you new in market? If yes, then some terms of market can harass you. To know better about market and trading, you need to understand all the terms very clearly. Order flow is one of the most important term to know in trading. If you want to learn basic about market and shares then you can stay with us up to last. Order flow in trading is a basic thing that should know all. And in this article not only we cover the order flow but also some relevant terms that is important for you to know.

So what is order flow?

The term is generated by market makers where this strategy is used by them to make commission and specialists receiving large orders to work. The better worth they got for the order, the more order flow they got. A lots of order flow, the a lot of they created in commissions.

Some relevant terms of order flow that you should know are:

Auction market theory: - Auction may be a term utilized in share exchange wherever consumer’s bids worth and therefore those that will bid the very best worth he's eligible to shop for that share.

NIFTY: - NIFTY is the stock index that was introduced by the NSE. NIFTY consists of fifty stocks that area unit actively listed. Next, these stocks are from 12 different sectors of the economy. The contracts of neat rank among the foremost listed within the world. India Index Services and Products Ltd. (IISL), that could be a subsidiary of NSE Strategic Investment Corporation restricted, manages and owns Nifty. The neat fifty is another necessary term that has to be understood before mercantilism within the stock markets. Therefore, allow us to take a glance at it and also the connected terms.

SENSEX: - SENSEX is also a stock index that was introduced by the BSE. SENSEX consists of 30 stocks that are actively traded. Furthermore, these stocks belong to different sectors of the economy.

Intraday: - It involves in daily market. The buying and selling of shares on the same day refers to intraday. The traders hold its shares for few minutes to some hours, up to market closes. If the trader buy or sells any shares in intraday and do nothing with that up to market off time then it automatically square off with market closing.

Holding: - It involves with weekly or monthly market. The buying, selling of the shares may take 2-3 days to few months to year. In this case investment is for long period.

These were some basics you should know while entering into market. Besides these, Stop loss, scalping and some other terms should be known to you.

Stop loss - It is used in trading to stop your loss by auto squaring off your shares while reach to that target.

While target, is also a term used to make profit by auto squaring off when it reaches to it target.

Both stop loss and target have similar work with different purpose. I wish above mentioned all the terms related to market were helpful for you. Keep searching and keep learning about the market because it's a very vast place.

Hope I fulfilled your search of order flow. If yet have any doubt then don't forget to write us on the comment below.