How to place a cover order
A cover order is an intraday two-legged order. The first leg of the order is the normal order, which is used for buying or selling the scrip. The second leg of the order is the stop loss order which is used to square off the scrip in case you start making losses. While placing a cover order you get to define the maximum loss that you are willing to bear for that order.
The cover order has a major advantage in terms of margin you get for placing that trade. Since you are ready to bear only a certain loss your losses are limited on that order. This means you need to pay only the amount of loss you wish to bear and not the entire amount.
For example if you are buying a stock at ₹100 & the maximum loss that you wish you bear is ₹5 then you order will get closed if the stock reached ₹95 (₹100 - ₹5). You also just have to pay ₹5 to place this order. Hence you get a major advantage in a cover order in terms of margin. Just like all intraday orders we close the cover order position at 3:15 PM.
To place a cover order you will need to select CO in the order complexity section while placing an order. You will need to enter the limit price and the stop loss price while placing a cover order.
Visit the How to place an order page to learn how to place an order on the app.