Introducing cover orders

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Information about Introducing cover orders

Published on November 1, 2018

Author: ShashankPatel60

Source: slideshare.net

1. By Tejas Khoday March 23, 2018 Introducing Cover Orders fyers.in/introducing-cover-orders/ As you all know that we have launched cover orders recently. It took me a while to write this post but here it is finally. Today, I will explain everything you need to know about Cover Orders, how to use it on our platforms. So let’s begin. What is a cover order? A cover order is an intraday order which can be either placed in a market or a limit order type with a mandatory Stop-loss order. Here’s a simple explanation of some of its features: 1. Compulsory Stop-loss order As explained earlier, a cover order needs to be placed with a compulsory stop-loss order. This stop-loss order is a market order and must be placed within a given range. The stop- loss order is modifiable. 2. Higher Leverage Since a cover order is placed with a stop-loss order, it locks the losses to a certain limit and minimizes the trading risk. Because of a pre-defined stop loss, it helps us as a broker provide extra leverage on cover orders. The leverage provided for a stock/scrip depends on the volatility, liquidity and overall risk. Also, scrips can be allowed/disallowed depending on the underlying circumstances for the purpose of safe risk management. Hence, it is subject to change from time to time. You can calculate the margin required for cover orders with our Margin Calculator. 3. Auto Square Off As mentioned earlier, the cover orders are an intraday time frame, therefore they 1/5

2. automatically get squared off at around 3:20 PM as per our risk management policies. How to place a Cover Order? The order placement functionality is slightly different on each of our platforms. To help you with it, I will explain how it works on each one of them separately. 1. Order placement on Fyers One: To place a cover order on Fyers One, choose the scrip you want to Buy/Sell and then press “F1” (for Buy) or “F2” (for Sell). You can refer this post to learn order placement on Fyers One. Once you press it, an order entry window will pop up on the screen. Please refer to the image below: Once you fill up all the details in the order entry form, you can click “Submit” to place the order. 2. Order placement on Fyers Web: To place a Cover Order on Fyers Web, choose a scrip from the watchlist and press BUY or “SHIFT+B” to buy or SELL or “SHIFT+S” to sell. In fact, there are several ways to place an order on Fyers Web. You can watch this video to learn more. Once you click it, you will see an order entry window on the screen. Please refer the image below: 2/5

3. 3. Order placement on Fyers Markets: You can place a cover order using our Mobile App – Fyers Markets. In this section, we will go through a step-by-step process to place a cover order on Fyers Markets. a. Upon login to Fyers Markets, you will see a Dashboard panel on the screen. Click on the “Blue icon” to search a scrip. Refer the image below: b. Type in a name of a scrip in the search box and choose a scrip you wish to trade. You can also search across various segments such as Equity, FNO, Currencies etc. Follow the process shown in the image below: c. Once you are redirected to the order entry window, you can follow a simple process to place a cover order on Fyers Markets. Once you fill up all the details in the order entry form, you can click “Submit” to place the order. 3/5

4. Cover Order Modification If you have already entered the trade, then you will only be able to modify the stop loss of the cover order. However, if your initial trade has not yet been executed, then you can modify both the order as per your preferences. Cover Order Exit It is important to note that cover orders are designed to exit via market orders and stop loss market orders for stop loss. One cannot exit via limit orders. Please note that if cover orders are not exited before the closing hours of the market as per our risk management policies, the position will be automatically squared off by our team before the market closes. Cover orders are essentially intraday orders which cannot be carried forward to the next day. Feel free to ask questions and get clarifications about cover orders in the comment section below. We will provide you with the answers as soon as possible. Happy trading! 4/5

5. Tejas Khoday Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India. 5/5

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