Basket order on Kite

A basket order on Kite, Zerodha’s trading platform, is a facility that allows traders and investors to create a list of multiple orders across different instruments and submit them all at once with a single action. Each individual order in the basket is a standard Kite order, it can be a market, limit, or SL order with any applicable product code, but the basket feature enables batch submission that saves time for multi-instrument strategies.

Basket orders are particularly useful for portfolio rebalancing, index constituent trading, strategy deployment, and managing multiple correlated positions. The feature is accessible through the Kite web interface and the Kite mobile app.

How basket orders work

Creating and submitting a basket order involves three steps:

1. Build the basket. The trader adds instruments to the basket one by one, specifying for each: instrument name, exchange, transaction type (buy/sell), quantity, order type, price (if limit), and product code.
2. Review the basket. Kite shows the full list of orders, the estimated total value of each order, and the aggregate margin or capital required across all orders. The trader can modify or remove individual entries before submission.
3. Submit. Clicking “Place all orders” sends all orders in the basket to the exchange in rapid succession. Kite processes each order individually; they are not submitted as a single atomic exchange transaction.

The basket interface on Kite also shows a margin summary, helping traders verify they have sufficient funds before submitting.

Key characteristics

Not atomic. A basket order is not a single exchange transaction. Each order in the basket is routed to the exchange independently. There is no guarantee that all orders will be filled, or that they will be filled simultaneously. If one order in the basket is rejected (due to insufficient margin, circuit limit breach, or other reasons), the remaining orders may still be processed.

Instrument diversity. A single basket can include equity, F&O, currency, and commodity instruments simultaneously, provided the trader has the relevant segments enabled.

Order types. Each order in a basket can independently be a market order, limit order, SL, or SL-M. Different orders in the same basket can use different order types and different product codes.

Reusable baskets. Kite allows traders to save baskets and reuse them in future sessions. A saved basket is particularly useful for recurring strategies such as weekly index option straddles, or for periodic portfolio rebalancing.

Use cases

Index replication. A trader who wants to replicate the Nifty 50 index by buying all 50 constituent stocks can prepare a basket with all 50 orders and submit them simultaneously, rather than placing 50 separate orders over 30 minutes.

Pair trading. A trader executing a long-short strategy (long Stock A, short Stock B) wants both legs entered as close together in time as possible to minimise leg risk. A basket order with both legs submits them in rapid succession.

Option strategy deployment. A multi-leg options strategy, such as a bull call spread, iron condor, or butterfly, requires buying and selling multiple options simultaneously. A basket containing all four legs reduces the risk of adverse price movements between leg entries.

Portfolio rebalancing. An investor who rebalances a 15-stock portfolio quarterly can save a rebalancing basket with pre-calculated buy and sell quantities, and execute the entire rebalance in one submission action.

Systematic investment plans. Traders who invest fixed amounts in a fixed list of stocks monthly can save and reuse a basket, adjusting only the quantities each month.

Margin and capital requirements

Kite calculates and displays the total margin and capital required across all basket orders before submission. For equity delivery (CNC) orders, the full investment value must be available. For intraday (MIS) and F&O orders, the applicable margin rules for each instrument govern the requirement.

The basket margin display does not account for margin offsets that the exchange might apply to offsetting positions (for example, a long call offset by a short call in a spread). Traders executing complex F&O strategies should verify actual post-submission margin requirements.

Comparison with related features

Common mistakes and edge cases

Assuming atomicity. The most common misconception about basket orders is that they behave as atomic transactions. If three orders in a five-order basket fail due to margin shortfall, the other two may still execute, resulting in an unbalanced position. Traders should monitor the order book after submission to confirm all legs filled.

Price drift between legs. In a limit-order basket, different legs may fill at different times as market prices drift between submissions. For time-sensitive strategies, use market orders in the basket to reduce fill-time dispersion.

Basket not refreshed. Saved baskets do not auto-update prices or quantities. A basket saved in January with specific quantities may be unsuitable in June after corporate actions, price changes, or strategy adjustments. Traders should review saved baskets before reuse.

Margin calculation at basket review. The margin displayed at the basket review stage is indicative. Exchange-level margin requirements can change between basket review and order submission, particularly during volatile sessions.

Order rejection causing partial execution. If one order in a basket is rejected (for example, due to a stock hitting its circuit limit), the rest of the basket still executes. The trader must manually handle the rejected order.

Regulatory context

Basket orders are a platform-level feature, not an exchange-recognised order type. SEBI does not specifically regulate basket order interfaces, but the individual orders submitted through a basket are subject to all standard exchange and SEBI regulations. Zerodha’s basket feature is covered under its general platform terms of service.

References

1. Zerodha support article: “Basket orders on Kite”, support.zerodha.com.
2. Kite user manual, basket order section, kite.zerodha.com.
3. SEBI circular on broker platform obligations, SEBI/HO/MRD/2023 series.
4. NSE trading member circular on multi-order submission, NSE/CMPT/2020 series.
5. Zerodha blog: “Managing portfolios with basket orders”, zerodha.com/z-connect.