Why is my Intraday/MIS position not auto squared off before the market closes?
Why is my Intraday/MIS position not auto squared off before the market closes? Find a clear answer in this FAQ by 021 Trade.
While it is the client’s responsibility to monitor positions and square off intraday orders, our Risk Management (RMS) team may start auto square-off of intraday positions from 3:15 PM onwards on each trading day to help prevent margin shortfalls.
However, in rare cases, positions may not be auto squared off due to certain system or market-related conditions, such as:
- System Failures: Technical issues or connectivity problems may prevent the auto square-off process from being executed as intended.
- Circuit Limits: If a stock hits its upper or lower circuit limit, square-off orders may not get executed. As a result, the position may remain open beyond the intended time. This can lead to short delivery if short positions are not closed before market close, or a margin shortfall if there is insufficient margin to convert MIS positions into overnight positions.
- Market Volatility: During periods of high market volatility, the RMS team may adjust the auto square-off timings or procedures at its discretion.
If you want to know more about intraday trading, click here.
