In 2015, the NSE implemented a mechanism to prevent self-trades for clients who have both buy and sell orders open for the same scrip at the same price. Refer to this FAQ (WEB) for more info. To learn more, see What is NSE's self-trade prevention mechanism?

In the case of Cover Orders (CO), if a client places a counter order that matches the CO's stop loss or target orders, the position will remain open without any target or stop loss order associated with it.

Example Scenario

If a client places a Buy Cover Order (CO) at the market price, with the Last Traded Price (LTP) at 100, and sets a stop loss at 99 (both orders placed simultaneously at the exchange), the stop loss order will be triggered if the scrip's price falls to 99 before the execution of the first leg.

If a CO is left hanging, the client has two options. They can either square it off by placing a counter order to their existing position using the NRML product type, or they can contact the dealer desk at 080 4718 1888 and request the Risk Management Services (RMS) team to cover the position.

Did you know? Cover orders are not allowed in the F&O (Futures and Options) segments due to the absence of additional leverage for CO on index options.