Understanding Market Execution & How to Buy at Lower Prices

In the market, execution only happens when a buyer matches a seller or a seller matches a buyer.

This means:

A buy order is executed at the lowest available offer (ask) price, top on sell side.
A sell order is executed at the highest available bid price, top on the buy side.

What Really Happens When You Click BUY or SELL

When you click BUY, the system automatically picks the current lowest ask price (top on the sell side)
When you click SELL, it picks the current highest bid price (top on the buy side).
In most cases, market orders buy or sell at any available price, since they dont have price attached buy submitted to check any available price even lowest or highest till all quantity is filled..
If you don’t change the price on the order entry screen, the trade executes at the current opposite price. Meaning you buy at very high price than the market.

Summary in terms of matching:

BUY → lowest ask

SELL → highest bid

How to Be Strategic When Buying

If you are not in a hurry, avoid chasing prices.

Check market depth
Focus on the bid side
Identify where the highest quantity of buyers is concentrated
Place your buy order slightly above the strongest bid price and amend quantity and price.
Use GTD (Good-Till-Date) validity- your order is valid and active for number of days you select at no charge.
Select a validity period of about 1 week

This gives a high chance of execution as prices fluctuate within the range and in most cases then next day when market opens. If broker submits orders early then you will be first in queue at your price hence if market order is sent, it matches your bid if prices happen to drop.

Why Placing Lower Buy Orders Works

Not all large orders stay in the market for long. the strong bids you see are cancelled at the end of day or submitted late the following day if GTD.
Many big orders are day orders and expire at the end of the trading session
The next day, those orders may disappear
Your GTD order may become the best available bid and first in the queue
This increases your chances of buying at lower prices.

If you are not in a hurry, you can place buy orders at even lower prices and wait.

How This Strategy Lowers Your Average Cost

Buying at lower prices reduces your average cost. (if the price is lower than your average costs)
When prices rebound, you reach a profit position faster
This works for both long-term investors and short-term traders

Important caution:

Avoid using this strategy on penny stocks with no dividends. Such stocks can continue adjusting downward without recovery and trap your capital for ever. remember when you buy from NSE, you are buying out existing shareholder may be at profit. You need to profit too by buying quality stocks..

What’s Coming Next

More videos are coming tomorrow and throughout this week to explain:

GTD orders in detail
How to read market depth correctly
Practical examples of lowering average costs

These lessons will make the concept simple and easy to apply. My goal is to make sure you make money at NSE.

Smart investors don’t rush execution — they control price. Remember to join any of channel below. Invite a friend to any they are free. Also keep eye on upcoming trainings.