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Cover Order

A Cover Order is a market order or limit order that is placed along with a Stop Loss Order. In a Cover Order, the buy/sell order is a Market or Limit order that is accompanied with a compulsory Stop Loss order, in a specified range as pre-defined by the system, that cannot be canceled. As there is a compulsory Stop Loss Order the risk automatically reduces because of which the margin requirement also automatically reduces thereby giving more leverage to the client for intra-day trading.

Kindly note that all cover orders (CO) are squared off at 3:20 PM (Cash/Futures), 4:50 PM Currency (CDS), and 11:00 PM /11.30 PM (MCX).

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How To Place Cover Order:

For placing a cover order add the script in the market watch as shown below. For Buy cover order click (Shift+F1) & Sell Cover Order (Shift+F2). The Buy/Sell order will execute at the market price/limit price and stop-loss can be defined as per the defined stop loss range.

Order Book (View Completed and Stop Loss Pending)

Once the CO order is placed completed market order or limit order and pending stop loss will be shown in the order book (F3). You can verify that it a cover order as the product type will be CO for the same. Stop Loss can be modified from the order book by using modify from the bottom of the window in the prescribed range only. Also note that against buying CO selling order should not be placed, as it will create a fresh position in your account and vice-versa.

Note: If you want to close the position at the current market click Exit from the bottom of the window. It will be executed completely as a partial position cannot be closed in CO.

Admin Position

You can view overall profit & loss from the Admin position (F11). Select Netwise and click Get positions.

To summarize

1. Cover Order is purely a market order & limit order with a mandatory stop loss within a pre-defined trigger range that reduces risk.
2. Margin utilized in cover order will be approx 20% of overall margin in NSE Futures/MCX/CDS thereby giving more leverage for intraday trading. Kindly refer this LINK for updated margin.  
3. Position cannot be executed partially and to book profit pending stop loss has to be Exit at market price from order book (F3)
4. Cover Order cannot be converted to NRML/CNC i.e same cannot be carried to next trading as it is purely an intraday trade.
5. Please note for clients in Rs. 999/1999- & Rs.499/- (CDS) unlimited monthly brokerage plan, Cover Orders are chargeable at Rs. 9/- per executed order over and above the current brokerage plan.