Why has Zerodha made square-off of BO-CO orders compulsory beofre 3:20?
Trades made in the BO and/or CO segment are trades made using leverage and are of type ‘Intraday’. All leveraged positions have to be closed before close of market session, and if you don’t do it yourself, the system runs an auto square off at 3.20, 10 minutes prior market closing. If you have sufficient margins, exit your BO/CO position and take the trade in CNC/NRML depending on whether you are trading Stocks/Derivatives.
Please note that, although the broker runs an auto square off, the onus of closing positions vests entirely on you. In the event that the broker cannot close your intraday position for whatever reason thereby converting to delivery/carry forward, if you are short on margins, Exchange penalty and interest may get levied on your account.