Sharekhan Auto Square Off Charges


Wondering why Sharekhan is charging extra fees on intraday trade. Here, you need to check a few things, like are you closing your position on time? If not, then the broker is imposing Sharekhan auto-square-off charges. 

Let’s get into the detail of these Sharekhan charges and understand why and when these charges are imposed.

What are Auto Square Off Charges in Sharekhan?

Okay, so let’s start with intraday trading.

What does it mean?

Opening and closing a position in a single trading session.


So, what is the duration of the trading session here?

Well! 9:15 AM to 3:30 PM.

It is the market opening and closing time, but every broker closes a trading window a few minutes before, and this is called square-off time. An intraday trader has to close his position before square-off time.

Failing to do so, the broker closes the position and charges a penalty on the trader which is called auto-square off charges.  Sharekhan auto-square off time is 3:11 PM.

Here is the detail of Sharekhan auto-square-off charges:

Now let’s understand the consequences of these charges:

For example, a trader is looking for a profit of Rs 500 after selling the share, and if he forgets to square off the position by 3.11. He will face a loss as an amount of  Rs 50 will be deducted and his overall profit will reduce.

What is more, Let’s say a trader loses money and he faces a loss of Rs.250. Here, the person is already in loss and if square-off charges will also be deducted, it will add up to his fall.

Also, these charges are other than Sharekhan intraday charges. This means, one has to pay the brokerage plus auto square off charges to the broker.

What is 5 Day auto square off in Sharekhan?

Now, as you are aware that the margin facility is provided for intraday trade. However, if you take an exposure margin is taken for delivery trade and the trading account run out of funds, then you need to add funds in T+2 days.

If not, then the penalty is imposed by the broker and also there are chances of liquidation of your shares to get back the positive balance in your account.

5 Day auto square off in Sharekhan is introduced to aid you here.

In such case, if your account becomes negative on the T+2 day, then your shares will be credited to a different account instead of your DP account till the account gets back to a positive balance. So, you get 5 more days to settle the payment.

Once you have sufficient funds, your shares will go back to your online DP account.

If you fail to clear your debt by the T+6th day, the “5-Day Auto Square Off” feature will activate by default and the broker will impose the auto-square off charges and also sell the shares to clear the negative balance.


Sharekhan auto square off charges are only levied when forget to close your intraday position or you are unable to maintain a minimum amount in the trading account for margin trading in delivery orders.

Make sure you remain active during trading hours and prevent yourself from any kind of penalty or extra losses in trade.

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