Why doesn't Zerodha allow intraday positions for contracts in ban period?

Zerodha Zerodha trivia
21

Thanks. I have read the comments above. But nothing felt strong enough to block MIS trading entirely on ban scrips. You can block MIS trading for deep ITM and OTM options if sqaure off is a concern in these (which is not specific to ban scrips trading)

My replies on your comments inline

  1. “Risks of allowing intraday trading are too high” - Risks of MIS trading are high independent of ban
  2. “also there will be 5 to 6 counters which will be in ban out of close to 200 stocks” - The reason stocks enter into ban is because of high OI, which means they are very attractive of the group for speculation
  3. “Anyhow end of the day it is users choice but as our policy we don’t allow it” - Policies are man made rules which should be revised from time to time for the benefit of the overall system. Imagine similar response from regulator on STT trap, would you accept it?

Hope you will re-evaluate your policy here

22

Theoretically I agree with you but to block illiquid options, strikes during the day is not practical. We have already examined it thoroughly and came to conclusion that allowing these for intraday trading put not only client but also broker at risk which can in-turn effect all other clients. Also one can use mis product type and trade intraday in equity if they wish to trade on these counters.