Cover Order Calculator

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What Is Cover Order

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:

Placing a Cover Order [ANT]

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
  • Press the shortcut key “SHIFT + F1” for a buy Cover Order → enter details → click “Submit”.
  • Press the shortcut key “SHIFT + F2” for a sell Cover Order → enter details → click “Submit”.

Modification of an existing Cover Order

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”.

Summary

  1. Cover Order is purely a Market Order with a mandatory stop loss within a pre-defined trigger range that reduces risk.
  2. Margin utilised in Cover Order will be approximately 20% of overall margin in NSE Futures/MCX thereby giving more leverage for intraday trading. You will be getting up to 5 times leverage in NSE Futures/MCX and up to 20 times in Equity.
  3. Position cannot be executed partially. To book profit, pending stop loss has to be exited at market price from the Order Book (F3).
  4. Cover Order cannot be converted to NRML/CNC to be carried to the next trading day as it is only an intraday trade.