Cover order is a special type of intraday order which allows trading with higher exposure (limit).

In cover order, buy/sell order is automatically placed along with a stop-loss order in a single click. This can save a lot of time which is spent placing separate orders.

Since a stop-loss order is placed simultaneously while getting into the contract, the risk one is taking automatically reduces. Hence a higher exposure can be provided in cover orders.

To learn more about Cover Order, please follow the below links:

  1. Benefits of Cover Order
  2. How does a Cover order work?
  3. How to place a Cover Order on NOW?
  4. How to place a Cover Order in NEST Trader?

Comments

  1. Pingback: How much exposure (limit) will I get in different segments? | Knowledge Base

  2. Pingback: Cover Orders Explained | Trade Smart Online Blog

  3. Pingback: How much exposure (limit) will I get in different segments? | Knowledge Base

    1. Trade Smart Online

      Hi Avanish,
      For equity cash you would get upto 30 times in cover order. For futures trading exposure is upto 7 times.
      Let’s take an example. If you have 10000 amount in your account then
      1) Upto 50000 idea equity share you could buy from cover order type
      2) The margin required for 1 lot of Idea cellular contract is around 70000 to carry forward the position. If you place order through cover order then, only 10000 margin will be blocked. This means, with the available balance of Rs.10000, you could buy 1 lot of Idea cellular contract through cover order.
      Kindly let us know if you still have any questions. Alternatively, you may also use our online chat facility available on our website for the instant support.

Ask a question