How does a cover order work?
Cover Order includes two components:
In case the entry leg is a sell order, the Stop Loss leg will be a buy order.
A Cover Order ensures that the Stop Loss order is automatically triggered if the price reaches a specified limit, offering better risk management and faster execution.
Intraday Square off Time :
Cover orders (Equity and F&O) are always intraday, meaning they must be squared off on or before 3:15 PM. This ensures that positions are not carried into the next trading day, aligning with short-term trading strategies.