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What is cover order and how to place cover order

What are cover order?

A Cover Order is a special way to buy and sell stocks on the same day (Intraday). It's like making a deal to get extra chances to make money while also having a safety net called a Stop-Loss order.

How Does It Work?

Imagine you want to buy and sell a stock within one day. With a Cover Order, two things happen at once: you place a Buy or Sell order, and at the same time, a Stop-Loss order is set up. This Stop-Loss order only becomes active if the stock's price goes to a certain level that you've decided. If that happens, the Stop-Loss order turns into a regular Buy or Sell order. This two-in-one setup is called a Cover Order, which helps prevent big losses on your trades.

Why Use Cover Orders?

1. Less Risk, More Gain: Cover Orders help you lower the risk of losing a lot of money while aiming for higher profits. They make sure you have a safety plan for each trade, helping you trade more carefully.

2. Using Your Money Smartly: You can use Cover Orders to use your money better. You get extra power to trade, and the safety of a Stop-Loss to protect you if things go bad. It's like getting the best of both worlds.

How It Works Step by Step:

1. To start, you place an order to buy or sell a stock.

2. At the same time, a Stop-Loss order is set up to help protect you if the stock's price goes down too much.

3. If the stock's price reaches the Stop-Loss level you picked, the Stop-Loss order changes into a regular order to sell or buy.

4. The price range where the Stop-Loss becomes active is decided each day. You need to set your Stop-Loss within this range.

5. Once you place a Cover Order and the first part of it is done, you can't change it. You can only exit the trade.

6. If, by chance, the first order is still waiting to be done, you can cancel the Cover Order.

7. You can change the Stop-Loss order if needed, but it has to be within the allowed price range. When you change it, your available money is checked again

How to place cover order?

1.Login to your application

2. Click on the stock you wish to buy from watchlist

3. You will get the order summary screen. Click on buy

4. You will get the order placing screen

5. Select Cover on the order placing screen

6. Enter the quantity you wish to buy

7. Select the market or limit as per your choice, and then enter stoploss. Click on buy, the order will be placed.

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