cover orders

i like cover orders not just because of leverage, but mainly bcoz it reduces your work. probably a very fast procedure of placing the SL order also.

but it has got its own disadvantages too. the main issue I face is when I want to square off a part of my order, which my broker doesnot allow. eg i placed a cover order for 4 qty & i want to square off 2.

does any broker allow such partial square off in cover order. like i place order of 4 sell. & want to cover 1, then 1 & then 2.

Another challenge is that your SL is fixed to 20% range from LTP.

If you are trying to place a breakout/breakdown order, it wouldn't work in many cases, especially for Options.

Cover orders are the 'best' if used correctly. They are the 'worst' during choppy and whipsaw trades.

I think cover orders can't be partially squared.


Why don't you try placing 2 orders at a time and square off 1 of them? (this is what I do)

will try, but normally it is a bit difficult as price runs up/down very fast after breakouts/breakdowns.
it would be like chasing