Market Orders — How to Buy and Sell on BODIVA

Why This Matters

Knowing what to buy is only half the equation — you also need to know how to buy it. BODIVA has specific trading hours, order types, and settlement procedures. Understanding these mechanics ensures your trades execute at the price you expect and your securities arrive in your account on time.

BODIVA Trading Hours

BODIVA’s equity market operates Monday through Friday on the following schedule:

Bond auctions follow a separate schedule published by BODIVA in advance, typically occurring weekly or bi-weekly depending on the issuance calendar.

Types of Orders

Market Order (Ordem ao Mercado)

“Buy/sell immediately at the best available price.”

You want 500 BAI shares right now. A market order tells your broker to execute at whatever price is available. If the best ask price is Kz 1,255 for 300 shares and Kz 1,260 for the remaining 200, you will buy 300 at 1,255 and 200 at 1,260.

Advantage: Speed — your order fills immediately (if there is volume). Disadvantage: Price uncertainty — in thinly traded markets, you might pay more than expected.

Limit Order (Ordem com Limite)

“Buy/sell only at this price or better.”

You want 500 BAI shares but only at Kz 100,500 or less. A limit order sits in the order book until someone is willing to sell at your price. If the best ask is Kz 1,255, your order waits.

Advantage: Price certainty — you never pay more than your limit. Disadvantage: Speed — your order may not fill if the market never reaches your price.

Day Order vs. Good-Till-Cancelled (GTC)

Day order: Expires at the end of the trading session if not filled. Most common on BODIVA. GTC: Remains active across multiple trading days until filled or cancelled.

The Order Book

BODIVA maintains an order book for each security — a list of all pending buy and sell orders arranged by price:

The spread is the gap between the best bid (100,000) and best ask (100,500) — Kz 500 in this case. Tighter spreads indicate more liquid markets; wider spreads suggest less liquidity.

If you place a market buy order for 2,000 shares, you buy 1,500 at Kz 1,255 (clearing the first ask level) and 500 at Kz 1,260.

Settlement: T+2

After a trade executes on BODIVA, settlement occurs on T+2 — two business days after the trade date:

• Trade day (T): Your order matches and executes. The trade is confirmed.
• T+1: Securities and cash are prepared for transfer through CEVAMA.
• T+2: Cash leaves your bank account (if buying) or arrives (if selling). Securities move to or from your CEVAMA custody account.

This means if you buy BAI shares on Monday, the shares appear in your account and cash is debited on Wednesday.

Practical Steps: Placing Your First Trade

Through Your Bank/Broker

1. Contact your broker (by phone, in-person, or through their platform if available)
2. Specify: security (e.g., BAI), direction (buy/sell), quantity (e.g., 500 shares), order type (market/limit), and limit price if applicable
3. Broker confirms the order details
4. Order is entered into BODIVA’s matching system
5. If matched, you receive a trade confirmation
6. Settlement on T+2

Online Platforms

Some brokers are developing online trading platforms. While Angola’s digital brokerage infrastructure is still maturing, increasing availability of electronic order entry is expected. Check with your broker for current digital capabilities.

Worked Example: A Day of Trading

Nuno places three orders on Tuesday morning:

Order 1 — Market Buy: 1,000 BAI shares at market price. Current best ask: Kz 1,252. Order fills at Kz 1,252. Cost: 1,000 × Kz 1,252 = Kz 1,252,000 + Kz 4,382 commission (0.35%). Total: Kz 1,256,382. Settlement: Thursday.

Order 2 — Limit Buy: 500 ENSA shares at Kz 640 limit. Current best ask: Kz 650. Order is entered into the book and waits. By 11:30, a seller offers 500 at Kz 640. Order fills. Cost: 500 × Kz 640 = Kz 320,000 + Kz 1,120 commission. Total: Kz 321,120. Settlement: Thursday.

Order 3 — Limit Buy: 200 BODIVA shares at Kz 1,080 limit. Current best ask: Kz 1,100. No seller reaches Kz 1,080 during the session. Order expires unfilled at market close (day order). Nuno can re-enter the order tomorrow at the same or adjusted price.

Key Takeaways

• BODIVA trades 09:30-13:00 WAT with pre-opening and closing auction phases
• Market orders execute immediately but with price uncertainty; limit orders guarantee price but may not fill
• The order book shows all pending bids and asks — the spread indicates liquidity
• Settlement is T+2 through CEVAMA — plan cash availability accordingly
• Trading costs include brokerage commission (0.25-0.5%), BODIVA fee (0.025%), and CMC fee (0.01%)
• Start with limit orders to control your purchase price, especially for less liquid stocks

Common Mistakes

Using market orders in thin markets — If a stock trades only a few hundred shares daily, a large market order can push the price significantly against you. Use limit orders for illiquid securities.

Forgetting about T+2 — If you sell shares on Friday, the cash arrives on Tuesday (skipping the weekend). Plan your liquidity needs accordingly.

Not checking the order book — Before placing an order, check available liquidity at different price levels. Your broker can provide this information.

What’s Next

Every trade has tax implications. The next lesson covers Angola’s investment tax framework — the IAC, withholding rates, and how to minimize your tax burden legally.

Next Lesson: Tax Basics — Understanding IAC and Investment Taxation

Monitor live market activity on the Markets Dashboard. Review BODIVA’s trading rules.