The stock trading term square off is a process of closing or exiting one’s currently held position. Zerodha Square Off Time varies on grounds of equity, currency features as well as on commodity.
To understand square off in simple words, assume that you bought a stock for ₹500 and sold it at ₹550. Here, the process of selling after buying is termed as squaring off. In fact, completing a transaction – be it selling after buying or vise versa is squaring off.
A person buys a share from Zerodha and now wants to exit the buy position. There are two probabilities here – he may either earn a profit or bear the loss.
Thus, if he doesn’t want to carry the position (buyer in this case) to the next day, he will have to square off his position.
Also, if a person has short sold a borrowed share, he must square off his position by the end of the day.
In case, it is not done, Zerodha automates the process of squaring off position if no stock is available in the physical form.
When it comes to the square-off charges, Zerodha, the leading discount broker, again gained the best position by charging only ₹20.
Other than this get to know about the square off time in the information below and trade smartly with Zerodha.
Zerodha Auto Square Off Time
Auto square off time refers to a default time set by a company at and after which you would not be able to modify your order. Hence, ensure to have a decent time margin and a glitch-free system.
Zerodha square off time happens to be at 3:20 pm sharp. Earlier, auto squaring off used to take place at 3:15 pm. However, owing to the inconsistent nature of the stock market, it was changed to 3:20 pm.
Besides, if a person’s funds are short of exchange specified margins, Zerodha squares off all open positions at the discretion of its RMS desk.
No margin call is made by Zerodha before doing so (squared off his position). If the loss happens to be more than the existing funds, all the probable debts from such square off have to be borne by the client.
Zerodha Square Off Time For Intraday Trading
In the case of intraday trading, squaring off is mandatory by the end of the same trade day. This implies that a person’s open positions must be closed before the market closes for the day.
The closing hour is that time when maximum movements are witnessed in the stock. This is typically due to a large number of traders trying to square-off their positions before the market closes.
If you sold, you must buy it and if you bought you must sell it within the same trading day. Failing to do so means that Zerodha will automatically square off your trade by 3.20 pm at the current market rate.
The Zerodha intraday square off timing can change as per the discretion of the company’s risk management department.
Zerodha Commodity Square Off Time
Zerodha also offers a provision for commodity trading. Currently, it provides various provision for trading in various commodities like:
The Zerodha square off time for a commodity is 25 minutes before closure. This implies that any commodity trade must be closed 25 minutes before the market closes.
This means that the stock is bought when the market opens and sold before closing time.
Zerodha square off time for intraday products (MIS, BO, and CO) is given in the table below.
Zerodha Square off Time
MIS, BO & CO
From 3:20 pm
From 3:20 pm
From 4:30 pm
25 min before close
Zerodha square off time for intraday can be changed based on the judgment done by the risk management department.
In case the intraday position is not squared off on the same day due to any system or link failure Zerodha considers it as Cash and Carry (CNC) or NRML position which is then carried forward to the next trading day.
However, if such a situation arises the burden is headed on the client. Zerodha RMS can also square off such a position without the requirement of a margin call if the cash is not available in the client’s account.
Zerodha Square Off Time MIS
As discussed already, Zerodha square off time is 3:20 pm, however, till 3:18 pm a trader has control over his positions in MIS (Margin Intraday Square up). Post 3:18 pm, the system takes over.
The system first cancels all the pending orders in the order book and after 3:20 pm, it auto squares off the trader’s remaining position.
It should be noted that squaring off does not always happen at 3:20 pm exactly. At times it happens at 3:21, 3.22 and even at 3.24 pm. Therefore, the square-off time ranges between (3:20 to 3:24 pm).
Thus, squaring off automatically takes place for all Zerodha BO, CO, and MIS positions at the end of each trading day.
Bringing up the rear, squaring off is the action of closing any open position held by the trader. It is best to have a fair time margin for doing so. Also, this ensures decent returns.
If the system takes over and squares off the position as per the market rate, you may not always garner desired profits and may incur losses as well.
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