What is a Cover Order?

What is a Cover Order?

A Cover Order is intraday order which is followed by a mandatory Stop Loss Order. Hence, two orders can be placed at one time. This helps traders minimize their losses by protecting themselves from unexpected market fluctuations. A Cover Order can be placed either as a Market order, when the order executes at the current price or as a Limit Order, when the price of the share hits the desired entry price. The stop-loss order cannot be cancelled.