- 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.
- 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.
- Cover order is meant for intraday trading only. All cover orders (CO) need to be squared off before 3:10 pm otherwise could be squared off at our end.
- In NEST software it is allowed for all NSE cash, NSE future contracts and for commodity future contracts.