Types of Orders in Dhan App: Complete Guide for Beginners

When you start trading on the Dhan app, understanding order types is one of the most important skills you can develop. Many traders focus only on which stock to buy, but the real difference between profit and loss often comes from how you place your order.

Dhan provides a wide range of order types that help you control price, manage risk, and execute trades efficiently. In this detailed guide, we’ll go deeper into each order type with detailed explanations, real-life examples, and practical usage tips.

What is an Order in Trading?

An order is an instruction you give to the market to buy or sell a stock or asset. Every time you click “Buy” or “Sell,” you are placing an order.

Different order types are designed for different purposes:

• To get instant execution
• To maintain price control
• To ensure risk management

Understanding these differences is what separates beginners from smart traders.

1. Market Order (Instant Execution)

A Market Order is the fastest way to enter or exit a trade. It tells the system to execute your order immediately at the best available price in the market.

✅ Key Points:

• No need to set a price
• Order executes instantly
• Best suited for highly liquid stocks

📊 Example:

Suppose a stock is trading at ₹100. If you place a market order, your trade may execute at ₹100.05 or ₹99.95 depending on demand and supply at that moment.

💡 When to Use:

• When you want quick entry or exit
• During strong market momentum
• When execution is more important than price

⚠️ Important Tip:

In volatile markets, prices change very fast, so market orders may result in slippage (unexpected price difference).

2. Limit Order (Price Control)

A Limit Order allows you to specify the exact price at which you want to buy or sell a stock. This gives you full control over your trade.

✅ Key Points:

• You decide the price
• Order executes only at your price or better
• No slippage risk

📊 Example:

If a stock is currently at ₹100 and you place a buy limit order at ₹95, your order will only execute if the price falls to ₹95.

💡 When to Use:

• When you want to buy at a lower price
• When you want to sell at a higher price
• When you are not in a hurry

⚠️ Important Tip:

Sometimes the price may not reach your limit, and your order will remain pending. So patience is required.

3. Stop Loss Order (Basic Risk Control)

A Stop Loss Order is used to limit your losses. It automatically exits your trade when the price moves against you.

✅ Key Points:

• Protects your capital
• Automatically exits losing trades
• Essential for every trader

📊 Example:

You buy a stock at ₹100 and set a stop loss at ₹95. If the price drops to ₹95, your position is automatically closed.

💡 When to Use:

• In every trade (no exceptions)
• Especially in intraday trading
• When markets are uncertain

⚠️ Important Tip:

Never trade without a stop loss. It is your safety net in the market.

4. Stop Loss Market (SL-M)

This is an advanced version of stop loss where execution is guaranteed.

✅ How It Works:

• You set a trigger price
• Once triggered, it becomes a market order

📊 Example:

Trigger price = ₹95
Once price hits ₹95 → Order executes immediately

💡 Benefits:

• Ensures your trade is closed
• No risk of order remaining pending

⚠️ Risk:

Due to fast price movement, execution may happen slightly below your trigger price.

5. Stop Loss Limit (SL-L)

This order gives more control than SL-M by adding a limit price.

✅ How It Works:

• Trigger price activates the order
• Limit price defines execution price

📊 Example:

Trigger = ₹95
Limit = ₹94
Order will execute between ₹95 and ₹94

💡 Benefits:

• Better price control
• Reduced slippage

⚠️ Risk:

If price falls too fast, order may not execute, leading to bigger losses.

6. Super Order (All-in-One Smart Order)

The Super Order is one of the most powerful features in Dhan, especially for intraday traders.

✅ Includes:

• Entry price
• Target price
• Stop loss

💡 Benefits:

• Fully automated trade management
• Saves time
• Reduces emotional decision-making

📊 Example:

Buy at ₹100
Target = ₹110
Stop Loss = ₹95

Once set, everything is handled automatically.

7. Forever Order (GTT / OCO)

A Forever Order allows you to place long-term orders that remain active even when the market is closed.

✅ Features:

• Valid for days or months
• Includes both target and stop loss
• One Cancels Other (OCO) system

📊 Example:

You buy a stock and set:

• Target = ₹120
• Stop Loss = ₹90

If target is hit → stop loss cancels
If stop loss is hit → target cancels

💡 Best For:

• Swing traders
• Long-term investors

8. Cover Order (CO)

A Cover Order is an intraday order where placing a stop loss is mandatory.

✅ Key Points:

• Lower margin required
• Higher leverage
• Built-in risk control

💡 Benefits:

• You can trade larger quantities
• Risk is limited automatically

⚠️ Important:

You cannot remove the stop loss once placed.

9. Iceberg Order (For Large Traders)

An Iceberg Order is used to place large orders without revealing full quantity in the market.

✅ How It Works:

• Large order is split into smaller parts
• Each part executes one by one

💡 Benefits:

• Avoids price impact
• Better average execution

📊 Example:

Instead of placing 10,000 shares at once, Dhan splits it into smaller orders.

10. Basket Order (Multiple Trades Together)

A Basket Order allows you to execute multiple trades in a single click.

✅ Features:

• Place multiple orders together
• Useful for strategies

📊 Example:

Options strategy:

• Buy Call Option
• Buy Put Option

Both execute together instantly.

11. After Market Order (AMO)

An AMO allows you to place orders outside market hours.

✅ Key Points:

• Place orders anytime
• Executes next trading day

💡 Best For:

• Working professionals
• People who cannot trade during market hours

12. Order Validity Types

Day Order:

Valid only for one trading session

IOC (Immediate or Cancel):

Executes instantly or cancels

GTT:

Remains active for long duration

Advanced Concepts You Must Know

• Slippage: Difference between expected and actual price
• Liquidity: Higher liquidity = faster execution
• Volatility: Affects order execution

Final Thoughts

Dhan provides a wide range of order types that help traders manage trades effectively. But knowing them is not enough—you must use them correctly based on market conditions.

If you combine the right order type with proper strategy, you can significantly improve your trading results.

👉 Remember:
Smart traders don’t just pick the right stock—they use the right order type at the right time.