I want to buy share on the Investnaija App, have done all necessary things, but on the share board I saw some options that I don’t understand the better one that I should choose,
1.a. Market (buy at official market price)
b. Limit (buy at my set price)
Second one is
a. Good for the day
b. Good till cancel
So in the 2 different columns, which option should I choose when buying my shares
For a typical long-term investor buying shares on InvestNaija, these are the options I recommend: 1. Market vs. Limit ✅ Market (Buy at official market price) Your order is executed at the best available market price. Best if you simply want to buy the shares as soon as possible. This is what most beRead more
For a typical long-term investor buying shares on InvestNaija, these are the options I recommend:
See less1. Market vs. Limit
✅ Market (Buy at official market price)
Your order is executed at the best available market price.
Best if you simply want to buy the shares as soon as possible.
This is what most beginners use.
Limit (Buy at my set price)
You specify the maximum price you’re willing to pay.
Your order will only execute if the share price falls to that price.
If the market never reaches your price, your order remains unfilled.
Which should you choose?
Choose Market if you’re comfortable buying at the current market price.
Choose Limit only if you have a specific price target and are willing to wait.
2. Good for the Day vs. Good Till Cancelled
Good for the Day (Day Order)
Your order is valid only for that trading day.
If it isn’t executed before the market closes, it expires automatically.
Good Till Cancelled (GTC)
Your order stays active until it is executed or you manually cancel it (subject to the broker’s maximum validity period).
Which should you choose?
If you’re using Market, choose Good for the Day. Market orders are usually executed quickly during market hours, so there’s little reason to leave them open.
If you’re using Limit, choose Good Till Cancelled if you’re happy to wait until the stock reaches your target price.
For most first-time investors
The simplest combination is:
✅ Market
✅ Good for the Day
That combination buys the shares at the current market price as soon as possible.
Thank you sir.
Thank you sir.
See lessSure, here's a detailed explanation of how to buy shares on InvestNaija using Market or Limit orders, as well as understanding the options you mentioned: 1. Market Order vs. Limit Order:- Market Order (buy at official market price): When you place a Market Order, you are telling your broker to buy tRead more
Sure, here’s a detailed explanation of how to buy shares on InvestNaija using Market or Limit orders, as well as understanding the options you mentioned:
1. Market Order vs. Limit Order:
– Market Order (buy at official market price): When you place a Market Order, you are telling your broker to buy the shares at the best available price in the market. The trade is executed immediately at the prevailing market price.
– Limit Order (buy at your set price): On the other hand, a Limit Order allows you to specify the maximum price you are willing to pay for the shares. Your order will only be executed if the share price reaches or falls below your set price. It gives you more control over the price you pay for the shares.
2. Good for the Day vs. Good Till Cancelled:
– Good for the Day: This means that your order will only remain in the system for that trading day. If the order is not executed by the end of the trading day, it will be automatically canceled.
– Good Till Cancelled: Choosing this option means your order will stay in the system until it is executed or until you decide to cancel it. It remains active beyond the current trading day until you cancel the order or it gets filled.
So, which options should you choose when buying your shares?
– If you want to buy the shares immediately at the prevailing market price, you can use a Market Order.
– If you have a specific price in mind that you’re willing to pay for the shares and want to wait until the price reaches that level, then you can go for a Limit Order.
– Regarding the duration of the order, if you are confident that the trade will be executed on the same trading day, you can choose “Good for the Day.” However, if you want the order to remain active until filled or canceled, you can select “Good Till Cancelled.”
Always ensure you understand the risks and benefits of each type of order before making your decision. It’s essential to consider factors like market volatility, your investment goals, and risk tolerance when choosing your order type.
If you have any more questions or need further clarification, feel free to ask!
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