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How does a Cover Order work?

  1. A cover order automatically places two orders.
    i.  a buy/sell market/limit order
    ii.  a stop-loss market order simultaneously placed automatically. The trigger price has to be in a specified range and the stop loss order cannot be cancelled.
  2. Once the market price of the stock breaches this trigger price, the Stop loss Market order gets activated. In the process you book lower losses.
  3. Cover order is meant for intraday trading only. All cover orders (CO) need to be squared off before 3:15 pm otherwise could be squared off at our end.
  4. In NEST software it is allowed for all NSE cash, NSE future contracts and for commodity future contracts.
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Comments

  2. Reply
    Kunal Shinde

    Hi, i wish to know at what time the intraday orders are auto squared off from your side. Is there different charges applied if position is squared off from your side. Also Is there difference in margin for Intraday normal order and intraday Cover order.

    Regards – Kunal

    1. Reply
      Trade Smart Online

      Hello Kunal,
      Kindly refer to our another knowledge base article to know the square off time different segments. If the intraday position is not squared off by you before the specified time, we shall square off your order and there shall be Rs.20 per order charge applicable.
      To know intraday exposure please click the link.

  3. Reply
    Shree

    Can place a BO order in option trading in Sine Web application? If yes then then can you please share the tutorial?

    1. Reply
      Trade Smart Online

      Hi Shree,
      In the order window, under the Product dropdown, you can select BO, target price and stop loss price. Our most of clients are active on Sine mobile app. Considering this, we have the video tutorials for Sine mobile app. However, we would suggest you to call us at 022-61208000 Extn:2 to know how to place BO orders in Sine web portal. Alternatively, you may also check our blog on Bracket Order for your better understanding.

    1. Reply
      Trade Smart Online

      Hello Sunil,
      Currently, you can place only buy/sell price and the related trigger price in cover order. Placing target order facility is not available in cover order. Instead, you can do the same in bracket order. Please go through the detailed blog on Bracket order.

  5. Pingback: What is a Cover Order? - Knowledge BaseKnowledge Base

    1. Reply
      Trade Smart Online

      Hello Rathnakara,
      Order execution is based on the price that is going on during order placing. We would like to see the price that you have put. Kindly contact us at 022-61208000 and speak with our customer executives.

  7. Reply
    Murad Chikte

    मैने ashok Leland के 500 शेअर 1 order देके खरीदे लेकीन आपके यहा से 1 order के बदले 5 order मे ashok Leland खरीदे दिखाये है ओ कैसे? मैने तो 1 order दिया था..कभी कभी तो आपके यहा से 500 कि order 50/40/70/90/60 /80/30/ ऐसे दिखाते है..तो कभी 1 शेयर की order दिखाते है मतलब 1 शेअर को भी 15 रुपये ब्रोकरेज

    1. Reply
      Trade Smart Online

      Hi Murad,
      Whenever the order is placed it will execute according to the number of buyers or sellers available in the market. Partially execution of order is because of the no. of shares that other share holders are selling. This happens with all the exchanges. In case of Rs.15 per order brokerage plan, you will be charged only Rs.15 even if your order gets executed in multiple trades. Please note if you use bracket orders then you might be charged Rs.15 for each partial order.

  8. Reply
    vibhor

    as per artilce “ii. a stop-loss market order simultaneously placed automatically. ” how much point of above or below this STOP loss order is placed ??

    1. Reply
      Trade Smart Online

      Hi Vibhor,
      As per our Risk Management measures, we have kept below trigger price range for cover order.

      1. NSE Cash – 10%
      2. NSE Futures – 3%
      3. NSE Options – 20%
      4. MCX Futcom – 0.8%
      5. CDS Futures/options – 0.7%

      The above trigger price range can be found on NEST Desktop and SINE mobile application.

    1. Reply
      Trade Smart Online

      Hello Sriram,
      Both Cover and Bracket orders have their own advantages and preference differs from user to user. However, the bracket order seems better as it places target and stop loss orders simultaneously.

  10. Reply
    sandip

    If live market showing ltp of crude as 3156, and i wanna buy it for 3170 with sl 3145, orders usually gets executed at 3157,bcz of market orders. This reduced my TARGET and increased SL. Do u have solution for this problem.

  11. Reply
    sandip

    In case of CO, can i place limit order instead of market order. Basically i am a scalper and i trade with another dicsount broker, they allow CO market order but not limit order, which reduces profit bye 1 or 2 points nd increases SL by 1-2 points in MCX crude everytime.

    1. Reply
      Trade Smart Online

      Hello Sandip,
      Both Limit and Market options are available in Cover Order if you are trading through NEST desktop software. In case of web based, there is only Market option available and not Limit. Very soon we would be adding CO/BO in mobile based app too.

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