Zerodha may block intraday orders for any instrument based on its risk management policies.
Zerodha blocks intraday (MIS/CO) orders for certain stocks due to regulatory or risk management reasons. When this happens, you can only place Longterm (CNC) orders for those stocks.
Intraday orders provide leverage, allowing you to trade with more funds than your account balance. Zerodha restricts these orders for specific stocks to reduce potential risks and prevent situations where you cannot exit your position, which could lead to short delivery.
Reasons for blocking intraday orders
- Volatile markets or sudden movements: Zerodha blocks intraday orders during high volatility periods to prevent losses beyond your available account funds and reduce credit risk.
- Low liquidity or volume: You cannot place intraday orders for stocks with low liquidity or trading volume due to insufficient market depth for smooth order execution.
-
Small circuit limit range:
Zerodha blocks intraday orders for stocks with narrow
circuit limits
to avoid excessive price fluctuations and potential market manipulation.
- High margin requirements: Zerodha blocks intraday orders for stocks with high margin requirements to help you avoid margin penalties from inadequate margin coverage.
- Regulatory restrictions: You cannot place intraday orders for stocks in special categories including Trade-to-Trade (T2T), Graded Surveillance Measures (GSM), and the Unsolicited SMS category.