Comment on Cover Orders - For Higher Leverage

Dharan commented on 16 Apr 2014, 03:11 PM

hi nithin,

cover order is blocked for options, i would request you to activate cover order for options, no need of extra margin….just like how you give 100 points stop loss range for nifty future, give 20 percent stop loss maximum for options. On an expiry day where huge volumes take place in options, and many strike prices go zero at 3.30pm, if there is cover order, we can safely put the order with a maximum stop loss at 20 percent. But many times i don’t trade in option on expiry day, due to fear that by the time i put the stop loss order, out of the money option becomes zero in just 45 seconds. So it will be very useful for protecting your capital, and days like RBI policy day, budget day, were is split second a big move happens, and you dont get enough time to put the stop loss order during those days.

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