Traders that usually trade with high leverage often use Cover Orders to control risk and protect themselves from potential losses. Really? There are ways to cut losses and minimize risk?... YES! Does a Cover Order help in any way?... YES! Okay, How?... Well, let’s find out. What is a Cover Order? A Cover Order is an advance intraday order that is accompanied by a compulsory Stop Loss Order. This helps traders minimize their losses by safeguarding themselves from unexpected market movements. A Cover Order offers high leverage and is available in Equity Cash, Equity F&O, Commodity F&O, and Currency F&O segments. It has 2 orders embedded in itself, they are Limit/Market Order Stop Loss Order How does a Cover Order work? A Cover Order can be placed either as a Market or a Limit Order. Although a Market Order executes the order at the current market price, a Limit Order is executed only when the price of the share hits the desired entry price. Let’s look at...

Margin shortfall penalty will be levied by the exchanges when there is a margin shortfall on overnight positions held in the trading account without sufficient margin as prescribed by the exchange. This penalty is applicable only for overnight margin shortfall however it does not apply for intraday positions. Margin shortfall is applicable to stock, commodity and currency exchanges (NSE, BSE, MCX, and MCX-SX). For more details about the prescribed margin required for Derivative future contracts please visit Daily Margin required for NSE Future contracts. How the Margin Penalty is calculated If the overnight margin is less than 1 lakh and the margin shortfall is less than 10% of applicable margin then, 0.5% of penalty is levied and in case if the margin exceeds 1 lakh or the margin shortfall exceeds 10% of applicable margin then, 1% margin is levied on the margin shortfall. Short collection for each client Penalty percentage (< Rs 1 lakh) And (< 10% of applicable margin) 0.5% (= Rs 1 lakh) Or (= 10% of...

Every profitable trader looks to maximize gains while cutting losses. It is a fairly common knowledge that trading in financial markets always involves some amount of risk. What if we told you that you can control risk and also be away from the trading terminal? Yes! You heard that right! Wouldn’t it be nice if you can automate all your trades? And not be glued to your screen like your grandma watching her favorite soaps on TV? Yes? So let’s begin. What is a Bracket Order? A Bracket Order is an advanced intraday order that is accompanied by a compulsory Target and Stop Loss Order. In simple words, this resembles a bracket which helps traders automate their trades. A Bracket Order offers high leverage and is available in Equity Cash, Equity F&O, Commodity F&O, and Currency F&O segments. It is a type of order where you can enter a new position along with a target/exit and a stop loss order. Hence, the order itself contains 3 orders embedded...