Rahul, the onus of squaring off all positions is in the hands of the trader. So ideally if a trader has used intraday leverage, he/she should square off before stipulated time rather than relying on auto square offs by broker systems.
Before running auto square offs on intraday positions, broker has to cancel all pending intraday orders in the system. If he doesn’t, the pending ones can get executed. Also typically the people who wait for intraday square offs is when sitting on a loss and not wanting to accept it and hoping something turns around magically. Not a very smart thing to do as a trader.
I think it is perfect that brokers sqr off pending MIS orders before Intrday sqr off . it reduces the overall risk and volatility in the market i feel .
Our MIS stop loss order will be cancelled at 3:20, but the position is still open. Suddenly price can fall a lot and since our stop order has been cancelled by broker, it can result in a big loss for trader. Any particular reason for brokers to cancel pending orders at 3:20 and then close position a minute or two later?
Rahul Bro , you are thinking from a retail trader point of view . broking business is all about reducing your risk and with wat your suggesting the risks increases exponentially for the broker and volatility increases in the overall market bro . So from Overall market point of view it is prudent to cancel pending Mis orders before intraday sqr off .