Why are intraday (MIS/CO) orders not allowed for some stocks?
There are two types of intraday orders currently available on Kite - MIS & CO. Since these orders allow you to trade with more funds than you have in your account (leverage), a higher risk is associated with them. A stockbroker may need to restrict intraday orders for some stocks based on regulatory or risk management reasons. You will only be able to place delivery (CNC) orders for such stocks.
Intraday orders can be blocked if the risk of not being able to exit the intraday position is high, which can result in a short delivery in some scenarios. Here are a few reasons intraday orders can be blocked:
- If the markets are volatile (or if there’s a sudden movement), specific intraday (MIS/CO) order types may be blocked. This ensures that clients don’t lose more money than what is available in their accounts and create a large credit risk to the broker.
- Low liquidity or volume
- Small circuit limit range
- IPO listing day (since volatility is usually high)
- The stock has a high margin requirement and intraday trading may attract margin penalty.
- The stock is in a category where regulations don’t allow intraday trading (i.e. in Trade-to-Trade, ASM, GSM, or Unsolicited SMS category stocks).
Click here to check the list of all stocks where intraday orders are blocked or allowed. The link includes a separate worksheet for each category of stock:
Note: Intraday orders may be blocked for any stock subject to our RMS Policy.