Master NGX Trading with Order Books and Limit Orders

For a long time, the Nigerian stock market was dominated by institutional and establishment investors but there’s a powerful wave of retail investors powering the market right now.

In 2024 when Bamboo launched NGX, we added the highest number of new accounts to the NGX and that trend has continued well into 2025. As more retail investors enter the market, it’s a blessing for the market but it can be a curse for retail investors like you if you don’t understand the tips and tricks that have dominated one of Africa’s largest stock markets.  

For example, ever wonder why, when you invest in Nigerian stocks, the quoted price you see on the stock information page can sometimes be different from the trade execution price? This is because of the dynamic nature of the Nigerian stock market. 

Let’s talk about two tips and tricks to help you get much more control over this dynamism. These features are Order Book and Limit Orders.

With our Order Book and Limit Orders, you can:

• Understand exactly where the market is trading right now
• See why your execution price might differ from your quoted price
• Place orders that stay active all day, reducing failed trades
• Have more control over the prices you buy or sell at

---

What’s an Order Book?

Think of the order book as a live x-ray of prices in the market.

It lists:

• Bids (Buy Orders): Prices buyers are willing to pay and how many shares they want.
• Asks (Sell Orders): Prices sellers are asking for and how many shares they’re offering.

Example:
You want to buy 1,000 shares of MTNNG. The quoted price in the app might be ₦448.50, but in the order book, you see the closest sellers are actually offering at ₦500.00 for 2,000 shares. What this means is that to get your order filled right now, you’d likely have to pay ₦500.00 — not ₦448.50 — because that’s the lowest price sellers are currently willing to accept. 

You have to remember, the stock market is exactly that- a market. For you to buy there has to be a willing seller at an agreed price. 

Key Benefit: The order book helps you anticipate the actual execution price before you place your order.

What’s a Limit Order? (And why it can be a game-changer)

A limit order lets you tell the market: “I’ll buy, but only if I can get it at this price or better” or “I’ll sell, but only if I can get at least this price.” You do this by setting the price (the limit you’re willing to buy or sell). The order then goes into the market and stays there for the duration of the day to maximise your chances of getting a good deal.

To put it this way, think of it as sending someone to a market to get you a crate of eggs. When they get to the market they’re told there’s no crate of eggs, only 2 eggs and so they return. When you use a limit order, the person you send to get the crate will go store after store till the market closes looking for a crate of eggs at the price you have told them to buy at.

Why This Matters For NGX Investors:

• Reduces failed trades: Unlike market orders that can fail if the price moves before execution, limit orders remain active for the entire trading day.
• More control: You choose the exact price you want.
• Pairs perfectly with the Order Book: Use the order book to pick a smart limit price that’s realistic and in your favour.

How To Master The Market with the Order Book and Limit Orders

1. Go to the stock you’re interested in on Bamboo.
2. Check the Order Book — see where buyers and sellers are placing orders.
3. Pick your Limit Price based on market reality, not just the quoted price.
4. Place a Limit Order — your order will stay active all day, giving it a better chance to execute. It’s helpful to know that the prices for limit buy and sell orders can only be set up to 10% above or below the day’s opening price; this is because stocks on the NGX cannot move above or below 10% in a single trading day. 

---

Pro Tip: If you see big buy orders stacking up below your target price, you might want to set your limit slightly higher to get filled sooner.

---

Why This Update Matters

For NGX investors, transparency and execution certainty have always been a challenge. Now, you have full visibility into market activity with the Order Book and greater control and fewer failed trades with Limit Orders.

---

Conclusion:
With these two tools, you’re not just trading — you’re trading with insight, control, and confidence.

---

Ready to trade smarter? Tap the button below to try out these tools on the app.