Cover Order need more margin than normal order? WHY

Traders Lounge
1

Kindly Explain

1.) Why does the Cover Order need more margin than normal order?

Example : normal order

If in nifty50 i purchased 50 quantity at the price of 119

50*119=**5950 **( +20+gst rs intraday charge)

but at the **same price **when I clicked on the cover order it showed 6553.

Why are charging extra?

  1. I placed a normal order and after that I put the SL . Will I pay an extra amount for SL?
2 Likes
2

  1. CO/BO orders are currently factoring in 1.1x of option premium debit. Charges are debited at day end billing process.

  2. If you are placing separate orders, then no factoring. Only premium amount will be debited. Charges will be debited as per the actual traded orders as mentioned in point no.1 above.