F&O LTP change on Positions before market opens on Kite
Open F&O positions held overnight on Kite can show LTP changes (and consequently MTM P&L changes) before the next trading session opens at 09:15. This is not a bug; several settlement and pre-market mechanisms can move the displayed LTP outside session hours.
Why LTP changes overnight
1. Settlement price replaces LTP at end of T
For each F&O contract, the exchange computes a daily settlement price at the end of every trading day. This is typically the weighted-average price over the last half hour of trading. After 15:30, Kite replaces the displayed LTP with the settlement price for MTM purposes.
The settlement price can differ slightly from the 15:30 LTP. When you check Positions later in the evening of trade day T, you see the settlement-based MTM, not the last-tick MTM.
2. Mark-to-market settlement debit / credit
Daily MTM settlement happens at end of T. Profit accrued during T is credited to your margin; loss is debited. The position’s avg open price is not changed; the LTP is shown at settlement, and the per-day MTM is realised.
For NRML positions held across T-1 to T, your account sees:
- T-1 evening: MTM credit / debit based on T-1 close.
- T morning: position carries open with LTP = T-1 settlement; MTM resets.
- T close: new MTM credit / debit based on T close.
3. Implied volatility shifts for options
Option premiums depend on more than just the underlying spot. Implied volatility (IV) shifts can move premiums overnight even with no underlying move. After-hours global events, news, or fresh order placement at session start can shift IV.
4. Time decay overnight
Option time-decay (theta) is continuous. An option contract loses value steadily over time. The overnight period (15:30 to 09:15 next day, plus weekends) decays option premiums even though no trading occurred.
When you compare the previous day’s settlement to today’s open, the option premium for a short option position will typically show a small overnight credit (in the seller’s favour) due to theta.
5. Pre-open session for index futures (not options)
Some index futures (Nifty, BankNifty futures) have a brief pre-open session from 09:00 to 09:08. During this window, indicative quotes can move the displayed LTP before the regular session opens.
6. Global cues for commodity / currency
MCX commodity contracts have an evening session (17:00 to 23:30). When you check Positions after the MCX evening session but before the equity / NSE F&O morning session, your commodity positions may show fresh LTPs while your equity F&O positions are settled-price-flat.
What the user sees
A typical sequence for an NRML F&O long position:
| Time | LTP displayed | MTM impact |
|---|---|---|
| T 15:25 | Last live tick | Live MTM |
| T 15:35 | Daily settlement price | Settlement-based MTM |
| T 23:00 | Same settlement price | Unchanged |
| T+1 09:00 | Pre-open indicative | Pre-open MTM shift |
| T+1 09:15 | First live tick | Live MTM resumes |
For options, the IV component can additionally shift overnight.
Implications for risk management
Many active traders place stop-loss orders based on the previous evening’s MTM. Overnight LTP shifts can:
- Trigger stops at pre-open if the gap is large.
- Bring the position closer to a margin shortfall without any trade execution.
- Allow profitable exit at pre-open prices (rarely, on a gap-up for longs).
A common defensive practice: monitor positions at 09:00 (pre-open), not just at 09:15 (session start).
Not a Kite-specific behaviour
Every Indian broker shows the same overnight LTP behaviour because the underlying settlement and pre-open mechanisms are exchange-level. Console, Kite, third-party portfolio trackers, and the exchange’s own data feed all agree.
See also
- Kite Positions tab explained
- Margin required on order window
- SPAN and exposure margin on Kite
- Margin available / used / cash on Kite funds
- Day’s P&L on holdings calculation
- Realised vs unrealised profit calculation
- Intraday P&L on Kite web
- P&L change after 3:30 PM
- Sold stocks shown as negative positions
- Delivery shares under positions same day
- Sold holdings bought back same day
- How to fix Positions tab showing profit when buy avg greater than LTP
- How to quick exit holdings / positions
- How to group / filter positions on Kite
- Margin on exit calculation
- Settlement (F&O)
- Pre-open session
- Futures and options
- MCX (Multi Commodity Exchange)
- Implied volatility
- NRML product type
- MIS product type
- Auto square-off on Zerodha
- Margin shortfall and auto-square-off
- Kite (Zerodha)
- Kite web
- Kite mobile app
- Zerodha
External references
- NSE Clearing, daily MTM settlement
- Zerodha Kite Support, overnight MTM
- NSE India, settlement price methodology
References
- NSE Clearing, Daily mark-to-market settlement methodology, nseclearing.com.
- SEBI, F&O settlement and margin framework, sebi.gov.in.
- Zerodha Support, F&O position overnight behaviour, support.zerodha.com.