Can i be sure my intra day shorts will be squared off even if i am not able to due to network failure sometimes?

General
1

compulsory square off of positions is indeed a boon for day traders,just wanted to know if i can be sure it will be done all the time

2

Auto square off is dependent on the broker. Some brokers square off at 3pm, some at 3:15. At Zerodha, it is 3:20pm. This square off will happen even if you log out the terminal. I am not sure if all brokers have this auto square of feature.

3

Auto square off will happen for all intraday trades, MIS, CO and BO.

You need not worry about it.

That's why square off time is set as 3:20 pm, So incase of any network issues at broker end etc., it will be sorted out hopefully within the next 10 mins and square offs will be done before EOD 3:30 pm.

In normal cases, all your intraday orders get squared off at 3:20 to 3:21 pm in zerodha.

Circumstances in which square off will not happen

When there is no counter party to buy or sell, square off will not happen. This can happen in two cases

  • When the stock is very illiquid
  • When the stock hits the circuit limit and trading halts in that particular stock

In these cases,

  • if you have already bought the shares it goes to broker's pool account, hopefully can be sold next day. If not it will come to your demat.
  • if you have shorted initially, you will taken through the route of short delivery process (auction).
1 Like
4

thanks, this question was in regard to zerodha.

5

What Astroguru pointed out is an important thing. Your short positions will not be squared off if there is no sellers. And this can result in short delivery and can result in big loss when going through auction.

6

thanks that helped

7

thanks that helped