After you have logged on trade.zerodha.com. Click on Z5 under trade and it will open another page with the Z5 application. When you click on buy or sell button under action of the script in the market watch. The buy or sell box will open. There is an option called product code under that the third option is CO. Which is Cover Order. Select this to place the cover order…
Once you log in to trade.zerodha.com (the screen you have shown snapshot on top), there is link “Z5” under Trade section. Click and wait for Z5 application to load. This Z5 application requires latest Java version to run without any hiccups, so make sure you have it.
In Z5 application window, in the market watch section you will see the scrips you have added previously. If not add scrips/stocks to your Market Watch.
When you click the Buy or Sell icon under any scrip, you will get a dialog box.
In this dialog box, the nineth row, you can see item named “Product Code”, choose cover order from that shortly mentioned as “CO”
Then mention the “Quantity” and “Trigger Price”, trigger price should be in the range which gets displayed there.
Then submit the order.
Now you can see one Entry order and one Stop Loss Exit order in your order book.
I can tell this for Nest Trader
Shift + F1 for Covre Buy & Shift + F2 for Cover short ...
Only way I know to exit is go to F3 -> orders -> select the opposite pending order there and click "Exit" button at the bottom
Good thing about this cover order is that you can stretch & use your margin limits to an awesome extent with this way ...
Bad thing about this cover order is that Both Entry & Exit happen At Market Price, which is a Nightmare for a intradaytrader / scalper...you only can control Qty of scrips to trade thats all.
Suppose Copper is trading at CMP 448 & you want to put Short Cover order at 450 Sell/Short with say 452 SL at market,You can not!! you simply have to wait and watch when price goes to 450 as well as when best buyer goes to 450, then only you can press the enter button & get it done.
So it is practically impossible to track many scrips for your target entry price every time you are trying to get a cover buy or short sell.
The Next Nightmare is the exit. You can only exit this AT Market Price, which is a spine chiller stuff. In a volatile market when market price is fluctuating every second you can not exit at YOUR price. It feels like a lottery ticket when you are exiting a trade.
I just had this Thrilling Experience yesterday. And I will recommend the day traders that DON'T ever go for this Cover Buy or Sell unless you have a SURE & STABLE big move in some direction and you are running short of margin. This method does gives you margin but simply makes you helpless in your trade management.