What is Cover order?

What is 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. 

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