In 2015, 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.
In the case of cover orders (CO), if you place a counter order that matches your CO's stop-loss or target orders, your position will remain open without any target or stop-loss order associated with it.
Example scenario
If you place a buy cover order (CO) at the market price, with the last traded price (LTP) at 100, and set a stop-loss at 99 (both orders placed simultaneously at the exchange), the exchange will trigger the stop-loss order if the scrip's price falls to 99 before the execution of the first leg.
If your CO is left hanging, you have two options:
You can square it off by placing a counter order to your existing position using the NRML product type. You can contact the dealer desk at 080 4718 1888 and request the Risk Management Services (RMS) team to cover your 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.