Question
Which of the following is not a type of order that can
be placed in the Indian stock market?Solution
A dark pool order is a type of order that is executed off-exchange and is not visible to other market participants. In India, the types of orders that can be placed in the stock market are market orders, limit orders, and stop-loss orders. In a market order, the investor buys or sells a security at the best available price in the market. In a limit order, the investor specifies the price at which he wants to buy or sell the security. In a stop-loss order, the investor specifies a stop-loss price at which the order will be executed if the price of the security reaches that level. Hence, option D is not a type of order that can be placed in the Indian stock market.
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