BO, MIS Order losses on sudden price moves

  1. BO Order on equity: Let us say I have Rs.5 in my account then Zerodha allows me to buy Rs.100 worth Ambuja Cem shares. Let us say I bought one share of Ambuja at 100 with SL 3 points under “BO”. Let us say due to some really bad news share crashed by 10% in few milli-seconds that my shares got squared-off at 93(even though they were sqaured-off at market order). Now my account is “Rs. -2” i.e. in negative. Who is liable to pay that Rs. 2 to other trader ? i) Trader itself(what if trader declare itself bankrupt) ii)Broker like Zerodha or iii) NSE itself … 2)I have similar question on Futures with “Normal Order” but still due to inherent leverage component in Futures, we can still face issue as point 1 if share crashes let us say by 20% in few milliseconds … Nithin can u please answer this ?

If you go to a restaurant with Rs.1000 in your wallet, end up overeating and make a bill of Rs.2300, do you expect the restaurant to waive off the additional 1300? Eat only for as much as you have. If you overeat, make sure you pay. Hope this answers your question.

You have to pay for it as you are trading not some other person.