Well! every other member of Zerodha uses this mobile trading platform to simplify their trading process. But only a few are aware of how to reap the best advantage of the tool.
No wonder, every trading platform is created with an objective of offering assistance to customers in viewing stocks, trading, monitoring the profits & losses, managing funds, and utilizing various trading tools.
Market Intraday Square off, abbreviated as MIS is a part of Zerodha Intraday Trading where you need to complete your trade within one single trade day. This means that if you have bought you must sell and vice versa.
A: Analyzing/monitoring the stock you wish to purchase
Log in using Zerodha login credentials to kite mobile app and open your watchlist
Select the stock you wish to buy from your watchlist
Once you click on a particular stock, it’s entire detail (such as market depth, bid, number of orders, offers, and quantity) along with the “buy” and “sell option will appear
To know more about that particular stock, scroll down and click on “fundamentals” as well as “technicals”
Before you place the “buy” order, you can view and analyze the charts of that particular stock by clicking on the “charts” icon
B: Filling In the “Buy” order details
Once you are sure that you want to purchase, click on “buy” (marked in blue colour)
Fill in the quantity of stock you wish to purchase and select the “MIS” box – since we are carrying out an intraday trade. (The “CNC” and “MIS” in Zerodha Kite does apply for delivery trades and not intraday trade, so do not select it)
MIS stands for “Market Intraday Square Off” hence, you will have to square off your open “buy” position to “sell” position before the market closure
Now, select your order type from these available options – “market”, “Zerodha limit order”, “SL” (stop loss limit order), “SLM” (stop loss market order)
In case you want to place a market order, select the “market” as your order type. Here, you will not be able to alter the order price because it will be executed on the current market rate
If you select “limit” as the order type, you can set an order type as per your desire. This “buy” order will be executed if the limit price is reached before the auto square off time
If you select “SL” which is a limit order with added stop-loss, you need to set your “stop-loss price” which when reached executes the order as well as limits the losses. Such orders are executed once the stock reaches the stop-loss price
For “SLM” you will have to set a “trigger price” for your order. Once the trigger price is hit, your order will be squared off. This order will be squared off at the current market rate as and when the stop-loss price is met
D: Placing advanced orders (optional)
All the above-discussed scenarios apply for regular orders. If you wish to place advanced orders, scroll down and you will find the “variety” segment
Under this segment, you can place BO (Zerodha Bracket Order), CO (cover order), and AMO (aftermarket order)
Select “BO” if you wish to trade in a range. Here, you need to set a “target price” which when met squares off your position. At the same time, you can enter a “stop-loss price” which will limit your probable losses. This whole set up works as a bracket for your order that ensures profits or locks losses as per the market movements
Note that for BO orders, you need to set a specific amount for “stop-loss” and the “target price”.
Assume that you set the stop-loss amount as ₹10 and the current market price of your “buy” order falls. If the market price falls by ₹10 (which is your stop loss amount), your stop-loss order will be executed thereby limiting your total loss to ₹10
Now assume that you set the “target amount” as ₹20. This means that if the current price of your purchased stock rises by ₹20, your order will be squared off (converted into “sell” order in this case)
You may also add a Trailing Stop-Loss in Zerodha orders. For this, a trailing amount must be set which increases the stop-loss amount (by intervals of the “trailing amount”) if your stock’s current price rises by that same interval
Likewise, the stop-loss amount decreases (in intervals of the “trailing amount”) if the stock’s current price falls down by that same interval
If you select the day validity, your order (a purchase/buy order in this case) will remain valid for that entire trading day
IOC stands for “Immediate or Canceled”
Select IOC validity if your order quantity is huge. For example, you placed 100 orders and eventually get a seller for only 60 of them. Since an IOC is applied, those 60 orders will be executed while the remaining 40 will be cancelled
The order placing procedure (for “buy” order in this case) is the same in Zerodha’s trading website i.e. on Kite Web. Since your desktop has a bigger display, charting and analyzing becomes a lot easier.
Also, you can avail the margin from the broker to execute trade. Also, you can learn the Margin Used in Zerodha using the Kite trading platform.
Note that the Zerodha Square Off Time is 3:20 pm for intraday orders hence, make sure to exit your open positions beforehand. If you fail to do so, the system will auto square off your order at the current market rate.
How To Buy Delivery Shares In Zerodha Kite?
CNC means “Cash And Carry” and as the name suggests, involves holding stocks for a particular period of time. CNC is therefore used in delivery trades where an investor does not wish to sell the share immediately.
Such stocks are used for long term investments as they can be held for a considerable period of time. Here’s how you buy shares in Zerodha Kite mobile app:
Log in to your Kite mobile app and select a stock from your watchlist that you wish you purchase
Now enter the quantity of stock you wish to buy and click on “CNC” under the “product” section
Since CNC stocks are intended for long-term investments, it is preferable to select “market” as the order type because no possibility can be predicted exactly for a longer span of time
However, if you wish to place a limit, SL, or SLM order, the procedure is the same as that of an intraday one. The only difference is that these orders remain held with you unlike intraday orders that get squared off before the market closure time
The Zerodha Kite mobile app is available for android as well as iOS users. For downloading it on an android, just visit the “Google Play Store”, type “kite” and install the application. Apple users may do the same from the “app store”.
Kite web is Zerodha’s online trading website that can be accessed through any browser.
Also, both the web and mobile versions of Zerodha Kite is available absolutely free for all Zerodha clients/users.
We hope that you can now buy shares using Zerodha Kite. Happy trading!