https://v2.webnotes.in/tags/itm/Recent content in ITM on WebNotesHugoen-INWed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/market-orders-blocked-deep-itm-index-options/Wed, 20 May 2026 00:00:00 +0000https://v2.webnotes.in/market-orders-blocked-deep-itm-index-options/<p><a href="https://v2.webnotes.in/zerodha/">Zerodha</a> Kite blocks <strong>market orders for deep ITM (in-the-money) index options</strong> to protect retail clients from large slippage. For these contracts, only limit orders are accepted.</p> <h2 id="why-blocked">Why blocked</h2> <p>Deep ITM index options often have:</p> <ul> <li><strong>Wide bid-ask spreads</strong> (10-20% or more).</li> <li><strong>Thin order book depth</strong> at quoted prices.</li> <li><strong>Mostly intrinsic value</strong> (minimal time value).</li> </ul> <p>A market order on a deep ITM option could execute multiple ticks away from LTP, causing substantial loss. Brokers block market orders to prevent this.</p>