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Cover order

A cover order is an intraday order that requires a compulsory stop-loss along with the entry.

Cover orders typically receive higher leverage because the stop-loss is mandatory.

They are popular for short-term index and liquid stock trades on retail platforms.

If the stop is hit, the position is exited under the broker’s cover-order rules.

Cover orders are usually square-off only products and are not meant for delivery.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.