Yes, you can use cover orders with Angel One margin funding. A cover order lets you place a market or limit entry order along with a compulsory stop‑loss order. When you combine it with margin funding, you gain even more buying power by using borrowed funds to enter your position, while the stop‑loss helps limit your risk.
What Is a Cover Order?
A cover order is a two‑part order that includes an entry trade (buy or sell) and a stop‑loss order. It ensures you are protected from large losses by automatically exiting your position if the price moves against you. This allows you to trade with confidence while managing risk.
How Does Margin Funding Work Here?
With margin funding, Angel One lends you funds to trade larger positions by paying a small margin. When you place a cover order using this funding, your entry and stop‑loss are both supported by the borrowed amount. It combines higher buying power with safety via auto‑exit on stop‑loss hit.
What Are the Benefits of This Setup?
By using cover order with margin funding, you can trade larger positions than your capital allows and still protect yourself with stop‑loss. This boosts profit opportunities and keeps potential losses limited. It’s a smart way to trade with controlled risk and leverage.
What Are the Risks?
With margin, losses can be magnified if the price quickly moves against your position. If your margin ratio falls below the required limit, Angel One may auto‑liquidate your position. That’s why cover orders require a strict stop‑loss to reduce this risk and safeguard your capital.
Is This Suitable for Beginners?
Yes, beginners can use this setup if they understand how margin and stop‑loss work. Angel One may require you to opt‑in for margin funding and cover orders. Start small, learn how stop‑loss works, monitor positions regularly, and always trade with a clear strategy.
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