Share market basics
An intraday order where the entry is placed together with a compulsory stop loss, so the maximum loss is defined from the start.
A cover order is an intraday order type where you must set a stop loss at the moment you enter. The broker links the two, so the position always has a defined exit on the wrong side. Because the maximum loss is known, brokers historically offered more leverage on cover orders than on plain intraday orders, though margin rules have changed and the difference is now small or gone at many brokers. Suppose you buy 200 shares of SBI at ₹800 with a cover order stop at ₹795. Your defined risk is about ₹1,000 before slippage. You cannot cancel the stop, only modify it within limits, and the whole position is squared off before the close. Cover orders enforce a habit that every trader should have anyway: decide where you are wrong before you enter.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
