Comment on Cover Orders - For Higher Leverage

Sandip_Chougale commented on 28 Jan 2013, 03:00 PM

Dear Sir, Greetings.
I am a NSE Future day trader. You have introduced the CO similar to Bracket order (but Without target price). Thanks & congratulation for this.
After reading all above posts, I understood below things about Cover Order. Please correct me if I am wrong.

1)Cover order is executed with Market price only & Stoploss should be set at given price range.
2)After execution of Market Buy order, we can modify the stoploss only in given range which was at the time of Buy. Ex.- If I have bought a Stock @ 100 & at that time SL range was 90-100 & CMP is 120 then range will not change, it will remain same as 90-100)
3)CO cannot be used as a trailing Stoploss.
4)We can square off the position by using modify or Exit but it will be executed with Market price only. No need to place separate Limit order for Square off or for profit booking.
5)Entry and exit both are at market price only.
6)CO is only for Intraday. If we have not closed the position before 3.20pm. Position will be automatically square-off by Zerodha at MARKET LTP.
7)CO order is neither MIS order nor a NRML order.
8)CO needs only 25% of Span margin. (Ex.- If Reliance lot size: 250, price: 850, Required Span margin: 33,000. If I use NRML it need 100% means 33000, If I use MIS it need 40% of this that is Rs 13,200 and if I use CO then I need only 25% of total Span which is Rs 8,250. It means I can buy 4 future lots in Just Rs. 33,000)
9)We can’t convert CO to normal order. We have to exit from CO if we want this change.
10)Please explain how can I place a Stoploss (which can be trailed) & profit target orders? Explain with example.
11)What is the meaning of MIS & NRML?
12)Can I carry MIS order or it is also made for Intraday?
13)Can you please upload small graphical videos to represent this type of details. Because reading all above posts is showing as well as creating lot of confusion. (Check Sherkhan’s video for reference)
Awaiting for your quick & positive reply… Also waiting for the start of “Bracket Order” facility for F&O.

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