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.