Comment on Pre-market/Post-market/After-market Orders

Sajeev commented on 18 Nov 2013, 05:27 PM

Greetings,

I feel that the Zerodha platform could be more error prone for people who use After Market Orders. Let me illustrate my point with an example – On 18th November I purchased 6300 Calls on both ICICI and Zerodha. On the 18th Nov night I decided that a target price of 39 was reasonable (it had closed around 34).

On ICICI, I went into my current open positions hit the square off link, specified the limit price of 39 and the order was queued for next day.

On Zerodha for the same transaction, I have to go and place a Sell AMO for 6300 Call. However this is error prone especially for people who trade in Out of the money options. For eg. Lets say my intention is to square off my existing 6300 Call for 39. However in the AMO sell option in error I choose the strike price of 6200 instead of 6300. If this gets executed the result would be that instead of squaring off my existing position I have written/sold a naked call of 6200 (assuming I have the requisite margin in my account) for 39 or above.

I would suggest that for existing open positions, 2 links be provided – (a) Market Square off (which can be disable during off market hours) (b) After Market Hours – If one clicks this then it provides options for either a limit, stop loss or market square off and the order gets stored as an AMO. This will minimize chances of error.

Thanks and warm regards,

Sajeev

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