Comment on ZT-Position Conversion

Shashank commented on 04 May 2016, 11:56 AM

I took MIS Market “sell” position in Nifty Futures @ 10:40 am. At around 3:16 pm this position went into 100 points profit hence I thought of
squaring off the same to book the profit by putting MIS Market “Buy” order.
To my surprise this order was not executed and the status showed “Open Pending”.
I thought the same order might get square off by zerodha @ 3:20. But there were more surprises in store for me 🙂
Even after 3:30 pm the profit booking (remember 100 points) order never got executed.
I was told there were few technical glitches @ zerodha server hence the order could not get executed at that time and will be settled by 5 pm.
When I checked again @ 6pm, to my surprise I was told that order was not executed and will be converted into NRML and will get executed the next day.

I have few concerns and queries with this –
1. Is it normal with the brokerage houses to convert MIS orders to NRML without my consent ? what does the rules say ?
2. Suppose market opened with a big gap on opposite side the next day, what will happen to my intraday profits ? even worst there are high changes of my
position getting into heavy losses. How does zerodha help me in mitigating this risk ?

View the full comment thread »