Cover are typically classified based on the type of trades they support, and they offer a structured way to manage risk. Let’s look at the two main types:

1. Buy Cover :
A Buy Cover Order is used when you expect the price of an instrument to rise. You enter a buy order combined with a compulsory stop-loss order set below the entry price. This setup helps limit potential losses if the stock price falls unexpectedly. 

2. Sell Cover Order:
A Sell Cover Order is appropriate when you anticipate a drop in the stock price. This involves placing a sell order with a compulsory stop-loss order set above the entry price, effectively capping potential losses if the price rises instead of falling. 

Both Cover Orders can be placed as either:

• Market Order: Executes immediately at the best available price, ensuring entry into the trade but with less control over the exact price.
• Limit Order: Executes only at the specified price or better, giving more control over the price but with the risk of the order not being if the price isn’t met.