I opened a/c with angel trading. I am very new to trading. Please help. Please be specific. I have tried asking the same questions in other threads but did not get an exact answer that I was looking for. thank u ALL here...
scenario 1:
Consider a liquid stock such as "Ambuja cememt". Assume that it is trading with a volume more than 2 lakhs at the moment with a price of 100. I want to buy 5000 shares only when price goes above 101. I will enter Trigger price as 101.10 and being an "liquid stock" will enter the limit price as 101.20 or 101.25. As this is a liquid stock, I am sure that the order would get executed within the limit price. But, suppose if would I enter a limit price as 101.90, does it have any difference on the price at which shares are bought? Please clarify.
Scenario 2:
Consider an illiquid stock such as "Star". Assume that it is trading with a volume of 20 thousand at the moment with a price of 100. I want to buy 5000 shares of it only when price goes above 101. I would enter a trigger price of 101.10. But, being an illiquid stock how far the limit price should be entered to make sure 5000 shares are bought? I guess, setting Limit price as 102.00 should be enough to buy 5000 shares for this illiquid stock. For example, in this case assume that average traded price is 101.55 . But, suppose if I enter Limit price of 103.00 would the shares be bought at higher price than if the Limit price were 102.00?