Why is Intraday order blocked for certain scrips on certain days? Mostly I noticed once the stock hits Upper or lower circuit, either the Intraday order is blocked next day or the margins are lowered on equity trading?
Is this decided by broker to block intraday(MIS) orders in the stock or is it a guidance from the NSE/BSE?
Also, do you guys maintain a list of stocks that are allowed for intraday MIS orders? Having this list before market open would be great to avoid any disappointments during the trading session. or suggest any way to find it before market open.
Intraday (MIS) orders are restricted for certain stocks due to risk management and regulatory considerations. These measures aim to protect investors and minimize potential losses for brokers.
Reasons for Restrictions:
High Volatility:
During periods of significant price fluctuations, MIS orders may be restricted to prevent investors from incurring losses beyond their available funds.
Low Liquidity:
Stocks with low liquidity may have MIS orders blocked to ensure sufficient market depth for smooth order execution.
Small Circuit Limit Range:
Stocks with a narrow circuit limit range may have MIS orders restricted to avoid excessive price swings.
IPO Listing Day:
On the day a stock is listed through an initial public offering (IPO), MIS orders may be blocked due to heightened volatility.
High Margin Requirement:
Stocks requiring high margins may have MIS orders restricted to prevent margin penalties.
Regulatory Restrictions:
Specific stock categories, such as those under ASM (Additional Surveillance Measure) and GSM (Graded Surveillance Measure), may prohibit intraday trading.
This is part of our plan, and we will notify you as soon as the list of intraday stocks becomes available for users.