What is the full form of CO in the Share Market?

The CO full form in the Share Market is a Cover Order. It is a type of order that traders generally use to place an order to either buy or sell their security while concurrently limiting their losses. This trading strategy helps to eliminate potential losses by placing both the primary order and the stop loss order. This approach helps traders to manage their risks effectively in a dynamic market.

Features of cover order:

It comprises of a primary order and a stop loss order. The primary order could be either a buy or sell order. The stop-loss order helps to limit the potential losses by specifying a price at which the order would be executed automatically in case the market moves unfavorably. Traders can make use of the cover orders to manage the risk effectively.

Advantages of cover orders:

The cover orders possess a built-in mechanism to control the potential trading losses. The traders need not monitor the market continuously, as the stop loss order would be executed automatically. In some markets, the cover order might involve reduced margins as the risk is limited and predefined.