Have you placed an intraday order in Zerodha Kite and are worried about extra fees charged by the broker? If yes, then this could be the auto square off charges in Zerodha that is charged when you forget to square off your intraday position on time.
In this article, we will gain a complete understanding of these charges in detail.
What is Auto Square Off Charges in Zerodha?
Auto Square off charges is the type of fees charged by Zerodha whenever you choose the MIS option to place a trade in the Kite app and forget to square off your position on time.
In such cases, the system auto square off your position and charged a penalty fee called auto-square-off charges.
Here is the detail of auto-square-off charges in Zerodha.
To avoid these charges, it is important to consider Zerodha square off time. Here is the detail of the same:
Intraday Auto Square Off Charges in Zerodha
Apart from the time and charges discussed above, there are some specific things that vary across the segment. In the case of equity intraday trade where auto square off charges in Zerodha are ₹50 plus GST, the total charges depend upon the number of executed trades.
So, as per Zerodha auto-square-off rules, only 30,000 quantities are auto-squared off per order. This is done to avoid any kind of volatility in the market.
Here if the trader is holding a position with higher quantities then multiple square-off orders will be executed and each time separate penalty is charged.
For example, if you opened a position by buying 1,00,000 shares then the auto square off will be as follow:
1st order= 30,000
2nd order= 30,000
3rd order= 30,000
4th order= 10,000
Since Zerodha charges flat fees for auto-square off hence, for each order you end up paying
As discussed these charges are above your brokerage fees charged on intraday. To know fees and taxes on intraday trade, check out the brokerage calculator Zerodha intraday.
Option Auto Square Off Charges in Zerodha
Similar to equity intraday, the flat auto square off charges in Zerodha is charged on the basis of quantity freeze limit in futures and options. Here quantity freeze limit is the maximum number of contracts one can buy or sell in a single order.
If your limit is beyond that then multiple orders will be executed and additional charges over your Zerodha option trading charges are imposed accordingly.
Here the quantity freeze limit for F&O contract depends varies from time to time and you can download the file from here
So, next time you place the intraday trade in Zerodha Kite make sure you consider square-off time to avoid auto square off charges in Zerodha.
You can know about these charges in your Fund Statement in Zerodha Console.
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