But a cover order can bust a trading account with just one wrong trade. Isn't it?

One wrong trade can make me lose substantial principal. And that too, within a range of 1.5% which is noise.

Yes, cover orders come with higher leverage and hence higher risk.

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It depends on your stop loss value, if you think only 2000 is what you can afford as loss, then set the stop loss value as per that.

In case the price moves in favorable direction, modify your stop loss and set it in the profit zone

In Cover order we cannot place stop loss at profit zone…

Initially you cannot, but after placing cover order, when the price moves in favorable direction, then you can modify the cover order and modify the stop loss trigger value.
You sell some shares at 300 rupees with stop loss at 303 rupees, if price moves down say to 290, then you can modify your stop loss to 295 or something, now you are in 5 rupees profit, if price further moves down you can again modify ans set a lower value. Use F3 to modify.