Zerodha and many other brokers provide Cover Order (CO) features in their trading platform. It’s an order placed on market price or limit price along with stop loss.
In cover orders (CO), traders set their stop loss at the time of order placement. So, they know their risk appetite when the trade goes against them.
However, sometimes we need to exit the position before decided stop loss. When you try to exit the trade from the positions tab, you can not do it.
You need to go to your order book and select the trade to exit the Cover Order (CO) positions.
If you want to close the Cover Order (CO), you can do it easily in the Zerodha order book. In this guide, I’ll teach you – how to close or modify cover orders in Zerodha.
Contents
How To Exit Cover Order in Zerodha?
Follow these steps to exit the cover order (CO) position in the Zerodha Kite trading platform-
Step 1- Go to kite.zerodha.com
Step 2- Enter your Client ID and Password
Step 3- Go to the Order list
Step 4- Click on the ‘three dots’ beside the order name
Step 5- Click on Exit
Step 6- Confirm Exit
Why I Can’t Exit Cover Order in Zerodha From the Position Window?
Cover Order (CO) mitigates the risks of bigger loss because it places a sell order along with a buy order.
So, a sell order is also placed in the stock exchange whenever you place a cover order (CO) with stop loss.
So, you can not directly exit your positions tab because a pending order is already placed in your order book.
Hence, you first need to open your Zerodha order book and cancel the pending stop loss order to exit your position.
Is Cover Order Only For Intraday?
Cover Order is a great feature many stock brokers provide in their trading platform.
A stop-loss order will also be placed, which cuts your position as per your decided loss when the trade goes against your analysis.
Cover Order is only for intraday because the stock exchange cancels all pending orders after closing hours.
All positions will be automatically squared off after closing hours.
Is Cover Order Available For Futures and Options in Zerodha?
Cover Order (CO) is only available for equity stock trading; all positions will automatically square off intraday.
Zerodha or any other discount brokers doesn’t provide Cover Order for Future and Options trading.
You can place a stop-loss order after buying/selling Futures and Options.
Also Read: How To Close Future and Options in Zerodha
Conclusion
Cover Order (CO) comes with a built-in risk management mechanism because it allows traders to place stop loss orders along with buy/sell orders.
You can close your cover order from the order book list. Just head over to the order book and check pending orders.
