A cover is a functionality that allows the customer to place a BUY order along with a Stop Loss order to mitigate risk, this way you can limit your losses to a pre-defined amount at the time of buying stocks, following are some important features of a Cover Order:

Cover Order is a two leg order, this means there are two seperate orders placed in thee exchange in case a cover order, wherein the 1st order is a BUY order and the second one a stop loss order.

1.) The first leg of the order or the buy order will always be a Market order

2.)Cover orders are strictly Intraday, which means if you do not square off the positions in time, the Risk Management Team (RMS) will square off the position before the trading seeion ends for the day

3.) 2nd Leg of the order is a stoploss order which will be an opposite order to the 1st leg (2nd leg will be Buy order if 1st leg is a sell order and vice versa). The 2nd leg order is a limt stoploss order where you have to enter the limit and trigger price.

For Example : You place a Buy cover order to Buy 200 AxisBank Shares. In this order 1st leg will be a market order and will get executed at market price (say Rs 1200). 2nd leg order will be Sell limit stoploss order where the Trigger price would be Rs 1150 and Limit Price would be Rs 1145. The 2nd leg order would get triggered if the LTP of Axis Bank slips below Rs 1150 and will get executed at Rs 1145.