Comment on Cover Orders - For Higher Leverage

Nithin Kamath commented on 05 Aug 2013, 04:15 AM

Pinak,

Firstly MIS and CO are 2 different order types, with MIS on reliance you get 10 times margin whereas with Cover order you get 20 times.

If you are using cover orders, the only way to exit is by modifying the SL to a market order. So basically when reliance goes to 930, you will have to click on SL and also on exit, this will sell reliance at market price. When you sell at market price, you may not exactly get 930, it could be a little lower or higher. Since Reliance is a very liquid stock, you shouldn’t have too much trouble exiting it as market order.

If you are trading using MIS you can put a SL and target order manually and as a limit order. So when reliance goes to 930, your order will be sold exactly at 930. But you will then have to cancel the stop loss order manually.

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