A Cover Order is a market order that is placed along with a Stop Loss Order. In a Cover Order the buy/sell order is always a Market Order that is accompanied with a compulsory Stop Loss order in a specified range as pre-defined by the system which cannot be cancelled. As there is a compulsory Stop Loss Order the risk automatically reduces due to 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) and 11:30 pm/11:55 pm (MCX)..
The 3 types of orders embedded are:
|From the Menu Bar||Using Shortcut Keys|
|Open Nest Trader → select “Order and Trades” tab →
select “Cover Order” → select either (Buy / Sell) order → enter details → click “Submit”.
|Open Nest Trader → select “Script” from market watch
Until the Cover Order is executed (Limit/Market Order being executed), you can modify both, Limit Order and the Stop Loss Order. But once the Cover Order is executed, only the Stop Loss Order can be modified. You can modify the Stop Loss Order provided you meet the margin requirements (since margin required varies with stop loss levels).
If you wish to exit a Cover Order, the system will first convert this order to a buy/sell order and square off the order at current market price automatically.
To Modify or exit a Cover Order, you can use either the shortcut key (F3) to open Order Book or click on “View Orders and Trades” button on the menu bar → Select “Order Book”.