We are currently providing NSE NOW & NEST, Fox Trader. In NOW software you can trade only NSE & BSE exchanges. In NEST you can trade all segments including MCX. If you wish to trade in all segments like equities & commodities etc, NEST is a perfect match for you as a single terminal for all segments e.g. NSE, BSE & MCX. Also, Fox Trader helps you in taking intelligent trading decisions with its analytical features.
Cover Order is a feature that helps you get more leverage while taking an intraday position. where you have an opportunity to gain from high returns. By placing a cover order, you get to limit your losses by specifying the mandatory stop loss trigger price. While taking an intraday position (which is done at market price), you get to specify the trigger price at the time of taking the position itself. This way the downside risk that would normally be present while taking on a leveraged intraday position is limited by setting the trigger price for the opposite order (square off) at the time of placing the order.
First, Cover Order helps you provide higher leverage while doing intra-day trading. Secondly, it helps you bring discipline into your trading by asking you to place SL order compulsorily thereby limiting your risk or defining your risk in each trade. While higher leverage avails you more trading opportunity, discipline instilled through SL affords you to protect your capital by limiting your losses, in case trade goes against your plan.
How is a Cover Order different from any other intraday order?Let us assume you wish to take a ‘buy’ position on Nifty based on intra-day movements of Nifty. In case of a simple order, you have exposed to both the upside and downside movement of Nifty, thereby susceptible to significant risk in compensation for possible high returns. In such a scenario, the client is better off by placing a Cover Order instead. This way you can: a. Leverage your ‘buy’ position by a measure of approx four times (depending on the margin). b. Specify a trigger price (which is for the opposite position, in this case – ‘sell’). This trigger price ‘sell’ order gets executed only if the market price of the stock falls below the trigger price set by the user at the time of placing the Cover Order. c. Limit losses to the maximum of the difference between the ‘Buy’ market price and the Stop Loss Trigger price in case of a downside movement of Nifty.
The Cover Order feature has now been extended to NSE, BSE, MCX, and derivatives. Thus you can now leverage your trades in all segments.
A client can either place a Buy Cover Order( Alt+F1) or a Sell Cover Order( Alt+F2). A Buy Cover Order implies buying Nifty, expecting the prices to rise during the day while specifying the trigger price for the sell order in case of a fall in the price. Similarly, a Sell Cover Order implies selling nifty, expecting the Nifty to fall during the day, and at the same time specifying the trigger price for the buy order in case of a rise in the price.
Yes both works at the same time as in Cover order, we have a mandatory stop-loss price you need to place while entering. As buy happens on market price and stop-loss/trigger price remains pending.
We have an option in the Order book to exit the pending stop loss where you need to exit the pending stop-loss/trigger price and position will be squared off and also the pending stop-loss price.
To book profit in a cover order you need to go to Order Book by pressing F 3. Order Book window will display you SL order as a product type CO. Select your order and click Exit ( down right corner of Order Book). Your order will be squared off at a Market Rate. Once the orders have been placed you will be able to see it in your order book.(F 3). Stop Loss once placed in Cover Order cannot be canceled but can only be modified within the range as indicated under trigger Price Range. You will be able to amend the Trigger Price “WITHIN THE RANGE” as indicated at the bottom left corner as Trigger Price Range.