Why does Zerodha charge Rs.20 for MIS/BO/CO square-off? Whether I close it or RMS closes it, it shouldn't affect Zerodha in terms of cost

#1

Please explain the reasoning behind charging for auto square-off of MIS/BO/CO before market closing

#3

Connectivity to the exchanges from our data center (where our execution platform sits) happens on leased lines. There are multiple leased lines, and here is a link to what NSE offers. If you click on the costing, you will see that the highest capacity line is 400 mps (messages per second), costs between Rs 12 to Rs 15 lks per year.

400 mps means this line can handle 400 messages per second. A message can be order placing/cancellation/modification.

Over the last few months we have suddenly seen an exponential growth in terms of clients placing MIS/BO/CO orders and not squaring off on their own. So what this means is that exactly at 3.20 pm, we have tens of thousands of MIS/BO/CO positions - so pending orders which have to be cancelled and existing positions squared off. This Rs 15 lk/year line can handle 400 such requests per second or 24000 per minute. We need to have 10 such leased lines if there are 2.4 lk pending MIS orders to be cancelled or positions to be exited in 1 minute. Which means an approximate cost of Rs 2 crores per year and also a drop in user experience for everyone else who is placing orders at around the same time since it would take 1 min for order to execute. We would have to incur this cost just for handling these MIS/BO/CO positions/orders that clients don’t square off on their own. We don’t need such a capacity for the rest of the trading day.

So yeah, the idea behind charging that extra Rs 20 as call and trade (since these orders are placed on our dealing terminals) is to be an incentive for clients to square this off themselves.

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#4

@ nitin WHILE AT THE OF OPENING THE THE ACCOUNT YOU DIDN’T TELL ABOUT IT TO CHARGE 20 RUPEES EXTRA WHILE LOT OF CUTOMERS HAVE OPENED THE ACCOUNT. TO GROW UP YOUR INCOME YOU BEGAN TO CHARGE IT GIVING SO CUTE EXCUSE. WHY DON’T YOU PUT AN OPTION TO CUSTOMERS TO AUTO SQUARE OFF AT A PARTICULAR TIME, WHICH YOU WILL NOT PROVIDE BECAUSE OF IT WOULD REDUCE YOUR INCOME. OK NOW YOU WILL SAY IF YOU ARE NOT SATTISFIED WITH US YOU CAN LEAVE. BECAUSE THERE IS NO ANY PLACE TO COMPLAINT AGAINST ANY PRIVATE ORGANISATION. SO YOU ARE THE KING.

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#5

But Sir it’s company problem why r u charged to our ledger?
i’m not tarded any stock via call & co. debit my ledger for call trade charges.
i just asked her my mis how to convert my all mis position to nrml and they charged for ask question why?

#6

Our rate sheet right from the start had a Rs 20 per trade as extra charges mentioned for call n trade/ orders placed via dealer terminals. We weren’t charging earlier, we had to start for the reason mentioned above.

3 Likes
#7

Best to send your account specific query to support@zerodha.com with your client ID. For position conversion there wouldn’t be any charge. If something has been because of a technical issue, it will get reversed.

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#9

@Bhuvanesh has left the watch tower ungaurded today. Trojans has infiltrated the fort. The above post needs to be removed @Bhuvanesh