What is CO?

  • On May 16, 2017
  1. Full form: Cover Order
  2. Can be used to trade in equity cash and Derivative segments. Not available for trading in commodity and currency segments.
  3. Equity cash & Derivative Leverage: 16-27 times, on a basket of 49 scrips (From NIFTY50).
  4. The product is specifically designed for intraday traders who look to leverage their capital, get additional exposure and take advantage of small price movements and have a disciplined approach to trading.
  5. It is compulsory to enter the trade with a stop loss. The amount of leverage depends upon the closeness of stop loss price to the current price. If the current price is Rs. 100 and a person “C” keeps a stop loss of Rs. 98, he can get more leverage as compared to Person “D”, who keeps a stop loss of Rs. 90.
  6. A trader can get extra exposure to immensely magnify their investment capacity; thus, vastly magnify returns. Eg. If you have Rs. 10,000 in your Tradedeal account and if you want to buy a scrip with a close stop loss, you can get 27X leverage, you can buy shares worth Rs. 2,70,000.
  7. Trader needs to square-off or close his position on the same day before 3:15 PM or it will get closed from the RMS end. It is a strictly intraday product and cannot be converted to CNC or Normal to take a long position.
  8. If the Mark-to-market value reaches 80%, the position will be closed from the RMS end. If the position is squared off from the RMS end, Call & trade charges of Rs. 18 will be applied.