Cover Order

A cover order is a two-legged order type where the main entry order (buy or sell) is placed simultaneously with a compulsory stop-loss order, ensuring that the position is protected the moment it is initiated. Unlike a standalone market order, a cover order mandates that the trader define a maximum acceptable loss before entry. Because the stop-loss is compulsory and immediate, brokers typically offer higher intraday leverage on cover orders compared to regular MIS (Margin Intraday Square-off) orders. Cover orders are designed for disciplined intraday trading, combining the ability to take leveraged positions with built-in downside protection.