You can use cover orders (CO) for intraday trading with built-in risk protection. A cover order combines your main order with a mandatory stop loss, automatically limiting your losses if the trade moves against you.
When you place a cover order, you place either a market or limit order alongside a compulsory stop loss order within a specified range.
How cover orders work
- For buy cover orders: Set your limit price higher than the stop-loss trigger price.
- For sell cover orders: Set your limit price lower than the stop-loss trigger price.
You can set your stop-loss trigger price within a 10% range when placing cover orders. Cover orders have specific limitations:
- You can only use them for intraday trading
- They are not available on BSE or F&O segments
- You cannot cancel the stop loss once placed
- You can only exit cover orders from the order book
- Zerodha may square off your open positions if you don't close them before the scheduled auto-square off timings.
If either part of your cover order gets rejected or cancelled, contact Zerodha's support team at 080 4718 1888 / 080 4719 1999 from 9:00 AM to 3:30 PM on trading days to square off your position.