How to exit a CO for which second leg order was cancelled?

I have by mistake cancelled the second leg of CO - the SL-M order which limits the losses. How to exit this order now? Open clicking exit position, there is no action taken since there is no further margin available.

I am using Kite on chrome browser.

Hi Vinayak,

Lets assume you have an executed Buy Cover Order(CO). Along with this buy position tags along a Sell SL-M(StopLoss-Market) order with a trigger price.

If the SL-M order is cancelled out in an instance where an invalid trigger price is fed into the order window, then you will have a naked position with no exit option for the CO from the open orders.

There are 2 scenarios that could occur:

Scenario 1. In case of Equity, all counter orders have to be placed in CNC(Cash n Carry - a product type used for equity delivery) and the settlement will take place by the end of the day. A Sell CO position can be countered with a Buy CNC position.

The exception here is a Buy CO position that needs to be countered with a Sell CNC position. Now, the trading platform will allow a Sell CNC order only when that quantity of position is already available in the demat account, which might not be the case.

This is facilitated by the RMS team, who inputs an equivalent position in the demat that can be sold in CNC in order to counter the naked Buy CO position.

Scenario 2. If you have a Future and/or Option position(buying for Nifty and Banknifty options only) in CO, then this is countered by an equivalent NRML order. Sell CO is countered by a Buy NRML order and Buy CO is countered by a Sell NRML order.

If there is a margin shortfall while placing the counter NRML order, then the RMS team updates the required margin into the clients account to place the counter position and then place the position.

In instances like this, the client will already be in a margin deficit and will not be able to place any further orders until the end of the trading day.

Happy trading!