Stock Market Basics · Lesson 5 of 14 · Updated October 2026 · 6 min read
Buying a share takes a few taps on a broker app, but the choices on the order screen matter. A wrong order type can buy at a worse price, and the wrong product type can close your position by the end of the day.
In short: Use a limit order so you control the price, choose delivery (often called CNC) for investing, and expect the shares in your demat account the next working day.
Market order vs limit order
| Market order | Limit order | |
|---|---|---|
| What it does | Buys right now at the best available price | Buys only at your price or better |
| Good for | Very liquid large-company shares | Almost everything, especially smaller companies |
| Risk | You may pay more than you expected in a fast market | Your order may not get filled |
Example: A share is trading around ₹500. You place a limit buy at ₹495. It fills only if a seller agrees to ₹495 or less.
Delivery vs intraday
- Delivery (CNC): you buy and keep the shares for as long as you like. This is investing.
- Intraday (MIS): you must sell before the market closes the same day, or the broker closes it for you. It often uses borrowed money (leverage) and is closer to speculation.
Beginners should stick to delivery.
Stop-loss orders
A stop-loss sells automatically if the price falls to a level you set. It limits losses for traders. Long-term investors usually rely on research and position size rather than stop-losses.
Settlement: when do I get my shares?
Indian stock markets settle on T+1. If you buy on Monday, the shares reach your demat account on Tuesday. If you sell on Monday, the money is credited to your trading account on Tuesday, and you can withdraw it to your bank.
Your first order, step by step
- Add money to your trading account.
- Search the company and check you have the right one (same name, NSE or BSE symbol).
- Choose Buy, Delivery, Limit, the quantity and your price.
- Review the total, including charges, and confirm.
- Check the order book: “Complete” means it is filled.
Common questions
Can I buy part of a share?
Not on Indian exchanges. You buy whole shares.
What if my limit order doesn’t fill?
It stays open until the end of the day and then lapses, unless you place a good-till-cancelled order where your broker offers it.
Next lesson: Nifty and Sensex Explained: What Stock Market Indices Tell You → · See all 14 stock market lessons
Education, not investment advice. Figures and rules as of October 2026; check the latest before you act.