Comment on Cover Orders - For Higher Leverage

Nithin Kamath commented on 31 Dec 2012, 09:47 AM

@Hemar and Surya, For buying options, even if you use cover orders you don’t get any margin benefit. But you can use cover orders for writing options and you will get the margin benefit. The only issue with using cover orders for option writing is that the SL range is 1.5%. so for eg if you write an option at Rs 50, you have to put a SL within the range of 50 to 51.5 which is a pretty narrow range for option trading.
For currency segment we haven’t enabled cover orders yet and should be done by 2nd week of JAN

View the full comment thread »