What Is Cover Order In Stock Market?

Discussion in 'Stock Market Forum' started by Advisorymandi, Mar 28, 2019.

  1. Advisorymandi

    Advisorymandi Member

    Joined:
    Mar 2018
    Posts:
    15
    Likes Received:
    1
    Cover order is one of the types of order in the stock market that often used in the derivatives market. It is common in traders who trade in futures & options.

    A cover order is a type of order that a trader can use to take an intraday position with a mandatory stop-loss order.

    In using cover order to trade, a trader has an advantage of extra exposure called “leverage”. When using a cover order, a buy/sell order can be a limit/market order accompanied by the stop-loss order. And that stop-loss order cannot be canceled.

    How does it work?
    Cover order is a two-legged order which takes place simultaneously with the market order when getting into a contract. With this, the trader gets added the advantage of leverage and the stop-loss triggered only at the specified stop loss trigger price.

    However, the first entry order is market order while the stop-loss order stays in the book gets trigger as market order only when the trigger price hits the stop loss limit price.

    The trader who is intraday trading must place stop loss order in a range. For instance, if the investor is trading in Crude Oil at Rs. 4000 and the range is specified as 10%. In this case, the traders can specify the stop loss order between price ranges of Rs. 3600 to Rs. 4400 as the trigger price.
     
  2. Pro Traders

    Pro Traders Member

    Joined:
    Jul 2019
    Posts:
    14
    Likes Received:
    0
    Why do people invest in stocks?
    Hi Everyone,
    Peoples For some, it's like gambling. They get high on the adrenaline that comes as a result of throwing hundreds or thousands of dollars into high-risk, high-reward endeavors. Of course, many individuals are highly calculated and look at investing in the stock market as a way to fund their future, perhaps in an extremely comfortable fashion. Of course, this is actually very possible to do, but not without the proper psychology, mechanics, and discipline in place.
     
  3. Pro Traders

    Pro Traders Member

    Joined:
    Jul 2019
    Posts:
    14
    Likes Received:
    0
    If you are interested in buying shares on the open market you will need an online broker account like for example TD Ameritrade or Fidelity. Once you have access to your account you can find us on the OTC market under the symbol FNHI.Visit link for more information :- https://franchiseholdingsinternational.com/contact-us/
     

Share This Page