Cover order behavior

I have tried CO first time.

I chose BUY of Equity with CO for 200 EQ and bought at price 100 and set Trigger price as 98.

I sold the same Equity with CO for 200 , should i use CO here or not ? . How to sell the above bought 200 CO.

I was seeing in the orderbook 2 SL-M with trigger pening and that atuomatically triggered at 3.20 PM.

Behaviour i had seen is in the contract note , it shows i had totally traded 400 EQ stocks.

Hmm.. check this post on cover orders. 

If you have entered using CO, to exit this you need to either go click on the pending SL and say exit.  If you place another selling cover order, it will be considered as a new trade. 

All pending CO positions are squared off at 3.20pm and hence you see 400 shares traded. 

1 Like

Cover Order is a single order which includes both your BUY and SELL orders in single shot. For example you create a cover order for Buying 200 equity shares, and you go and see the order book, you can see 2 items.

1. Buy Order which will be complete based on market price (close to 100 INR)

2. Sell Order which will be pending, with a stop loss trigger at 98

You dont need to create any other additional order in order to sell your shares, your sell order is automatically created by system with a compulsory stop loss.

So if price moves to say 102, you are in profits. If you want to sell of your shares at 102 itself, you need to choose the STOP LOSS SELL order which was automatically created and select EXIT COVER ORDER option. If you do that, your 200 shares will be immediately sold at market price close to 102.

If price moves down against you, you can modify the STOP Loss trigger value further down say 97 rupees, using the MODIFY option after choosing the SL-Sell order which was automatically created.

You cannot modify the trigger price above 100 which is your buy price, but you can reduce the price to 97 or less. Edit: Now you can modify the stop loss value of cover orders above 100 also, so that you can safeguard your profits.

If you dont modify and left it as it is, when comes down, your stop loss trigger will happen at 98 and all your 200 shares will be sold at market price near 98.

1 Like

If i had bought 200 shares with CO and to sell what should be the option chosen in UI ? Is it NRML / MIS ?
Or exiting the cover order will sell and remove the SL order ?