• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Market Movers
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2024
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2024
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Fund Expert
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
​

What are cover orders and how can one use them?

Cover Orders (COs) can be described as a mechanism that limits your loss, and in turn, reducing the risk. In other words, cover order can be a market or a limit order that is placed along with a stop loss order. When a stop loss order is placed, you will know in advance the maximum loss that you have to incur if the trade doesn’t work for you, or if the price of your holding moves adversely.

The objective of a cover order is to decrease the risk for the trader.

When the cover order is a market or limit order that’s placed with a mandatory stop loss order within a stipulated range, the stop loss order can’t be canceled.

How To Place A Cover Order:

  • To place a cover order, you can select either SL-Market or SL-Limit and enter the Stop Loss trigger price.

  • SL-Market Order → First leg is a Market order while the second leg is a Stop Loss order. Read More

  • SL-Limit Order → First leg is a limit order while the second leg is a Stop Loss order. Read More

  • You should also know that when placing a buy CO, your limit price has to be greater than your stop loss trigger price.

  • In contrast, when you place a sell CO, your limit price has to be lower than your stop loss trigger price.

  • It is applicable for both Delivery as well as Intraday.

Choose a platform
This feature is not allowed for this platform.
Did you find this helpful?
Help us improve this answer with your feedback.

Open Demat Account
+91 -

​N
​N
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]
[object Object]