NEPSE basics

How NEPSE trading works: orders, settlement and circuit breakers.

Buying and selling a share on NEPSE involves more steps than it first appears: a broker account, a CM account, a limit order on the exchange's book, a two-day settlement cycle, and automatic price limits. This guide walks through the full lifecycle of a trade from placement to settlement.

7 min read · Updated · 7 Jul 2026

What do you need before you can trade?

Three accounts are required:

DEMAT account at a DP (your share custody account, via CDSC). If you do not have one yet, read what NEPSE is and then follow the steps in the DEMAT account guide.
CM (Capital Market) account: a bank account linked to your DEMAT that is used specifically for trade settlement. Most banks set this up alongside your DEMAT.
Broker account and TMS login: your broker (a licensed NEPSE member) gives you access to a Trading Management System (TMS), which is the platform where you actually place orders.

How do you place an order?

Log in to your broker's TMS (most are web-based; some have mobile apps). Search for the stock by symbol (for example, NABIL for Nabil Bank). Enter:

Quantity: the number of shares (kitta) you want to buy or sell.
Price: NEPSE uses limit orders. You set a specific price. The order executes only if the market reaches that price or better. There are no market orders on NEPSE.
Order type: day orders expire at the end of the session. Some brokers offer good-till-cancelled (GTC).

Submit the order. It enters NEPSE's central limit order book and waits to be matched with a counterparty who has a matching buy or sell at a compatible price.

How does order matching work?

NEPSE operates a continuous limit order book during the main session (11:00 AM to 3:00 PM NPT). Orders are matched by price-time priority: the best price gets matched first; when two orders have the same price, the one placed earlier executes first. Partial fills are possible if the full quantity is not available at your limit price.

What is T+2 settlement?

Once your trade is matched, it does not settle immediately. NEPSE uses a T+2 settlement cycle: settlement happens two trading days after the trade date.

If you buy on Monday: shares arrive in your DEMAT on Wednesday, and the cash is debited from your CM account on Wednesday.
If you sell on Monday: shares leave your DEMAT on Wednesday, and the cash arrives in your CM account on Wednesday.

The T+2 lag matters when you are trying to qualify for a dividend. If a company's book closure starts on Wednesday, buying on Monday means your trade settles exactly on Wednesday. Buying Tuesday is too late.

What are circuit breakers?

Circuit breakers are automatic rules that pause or stop trading when prices move too fast. They exist to prevent panic-driven crashes. NEPSE has two types:

Stock-level price limit: Since April 2026, each individual stock has a daily price limit of plus or minus 15% from the previous day's close. The stock cannot trade outside this band on any given day.
Index-level halt: If the NEPSE index falls 5% within the first two hours of the trading session, the whole market halts for 15 minutes. If the index falls 8% at any point in the session, trading closes for the rest of that day.

How does collateral and margin work?

Standard NEPSE trading requires that you have sufficient funds in your CM account to cover the full buy amount (no leverage for retail investors by default). Some brokers offer margin facilities, where they lend you a portion of the trade value against collateral (your existing shares). The terms and interest rates are set by individual brokers. Margin trading carries additional risk; if the stock falls you may receive a margin call requiring you to top up the collateral.

Practice before you trade with real money

Punji's virtual trading feature lets you simulate buying and selling NEPSE shares with live market prices but with no real money at stake. It is useful for building intuition about order placement, price limits and T+2 before you risk your own capital.

Common questions

Answered plainly.

How does NEPSE trading work?

To trade on NEPSE you need a DEMAT account (to hold shares), a bank account, and an account with a licensed NEPSE broker. You place buy or sell orders through your broker's Trading Management System (TMS). Orders are matched on NEPSE's central limit order book by price-time priority during the continuous trading session (11:00 AM to 3:00 PM NPT). Settlement happens T+2: the shares move between DEMATs and the cash moves two trading days after the trade.

What is T+2 settlement on NEPSE?

T+2 means the trade date plus two working days. If you buy shares on Monday (T), the shares arrive in your DEMAT and the cash leaves your CM account on Wednesday (T+2). Similarly, if you sell on Monday, you receive the cash on Wednesday. This is important when calculating whether you will own shares before a book closure date.

What is a limit order on NEPSE?

A limit order is an instruction to buy or sell at a specific price (the limit price) or better. A buy limit order will execute only if the market price reaches your limit or lower; a sell limit order executes only if the market price reaches your limit or higher. NEPSE's order book is a continuous limit order book during the main session.

What are NEPSE circuit breakers?

Circuit breakers are automatic halts that protect the market from extreme moves. Since April 2026: individual stocks have a daily price limit of plus or minus 15% from the previous close. If the NEPSE index falls 5% within the first two hours of trading, the market halts for 15 minutes. If the index falls 8% in any session, trading closes for the rest of the day.

What is a CM account?

A CM (Capital Market) account is a dedicated bank account linked to your DEMAT for settling NEPSE trades. Your broker debits the buy amount and credits sell proceeds to this account on the T+2 settlement date. Many banks offer a CM account alongside a regular savings account; they are usually managed together.