faq

TRADING

What is the difference between Trade and Order?

  • On May 16, 2017

Traders and Investors are often confused and can’t differentiate between Trade and order. Competitors tend to take the benefit of this ambiguity. To put rumours to rest, here is the difference between the two

 

Order: When an investor/trader buys or sells a particular amount of shares/commodities/currencies, it is known as “Order”.

 

Eg. If person A buys 1000 shares of reliance, the action of purchasing 100 shares is called an “Order”.

 

Trade: When an investor/trader buys or sells a particular amount of shares/commodities/currencies, the share would be bought or sold in instalments or full based on the availability of sellers or buyers. These instalments of purchase or sale is known as “Trades’.

 

Eg. If person A buys 1000 shares of reliance, based on the availability of sellers, these 100 shares are bought in the following pattern – 100 shares, 350 shares, 300 shares, 200 shares and 50 shares. These 5 instalments are 5 trades.

 

Note: At Tradedeal, brokerage is charged on executed orders and not trades.