Cover orders are complex orders that are meant to help to limit the loss within predefined values if trade becomes unfavorable. A cover order is essentially a combination of two regular orders—an initial order and a stoploss order, which act together to help to limit the loss in case trade becomes unfavorable.
Please refer to the introduction of the Placing a cover market order recipe for an in-depth understanding of the working of cover orders. You can use a cover limit order if you want to place a buy cover order below the market price or a sell cover order above the market price. This recipe demonstrates the placing of the following cover limit orders and querying their statuses:
- The BUY, COVER, INTRADAY, LIMIT order
- The SELL, COVER, INTRADAY, LIMIT order
The following are references to the state machine diagrams for a cover limit order:
- Initial order: Refer to the state machine diagram from the Placing a regular limit order recipe in the previous...