RMS on WebNotes

How to fix an intraday position not auto-squared-off

Sun, 21 Jun 2026 00:00:00 +0000

An intraday position on Zerodha that is not auto-squared-off by the cut-off does not vanish; it converts the same evening into a delivery position under CNC or, in derivatives, a carry-forward NRML position. The square-off you rely on is a risk-management safety net the broker runs around 3:20 pm for equity MIS , not a guarantee, and Zerodha’s own policy states the onus of closing intraday positions stays with the client. When the net does not catch a position, the cause is almost always one of a small set: the scrip was illiquid or locked at a circuit , the order ran above the per-order quantity cap, or an exchange or RMS delay intervened.

Why orders get rejected on Kite

Sun, 21 Jun 2026 00:00:00 +0000

A Kite order is rejected when a pre-trade check, run either by Zerodha’s Risk Management System or by the NSE, BSE, or MCX matching engine, fails before the order can rest in the book. The rejection is not silent: the exact reason is written into the order detail in the Kite Orders tab, and that string names the specific rule that blocked the order. Reading it is the whole diagnosis. Almost every rejection reduces to one of a fixed set of causes, and each cause has a documented fix.

Zerodha policies and procedures: the mandatory broker policy

Sat, 20 Jun 2026 00:00:00 +0000

Zerodha’s policies and procedures is the SEBI-mandated broker policy document, published at zerodha.com/policies-and-procedures/, that sets out the operating rules between Zerodha and its clients: the risk management system, charges and penalties, margin and pledge rules, penny-stock and illiquid-security restrictions, account closure and inactivity, business-continuity arrangements, and the anti-money-laundering policy. Every SEBI-registered stock broker must publish such a document and have clients acknowledge it at account opening, which makes it the binding rulebook behind the day-to-day operation of the account.

RMS policy for MTF square-off

Wed, 20 May 2026 00:00:00 +0000

The Risk Management System (RMS) policy for MTF square-off on Zerodha (and any broker offering MTF) follows a defined sequence: margin call notice, top-up window, then forced liquidation if not addressed.

Trigger: MTM erosion

MTF square-off is triggered when:

Position MTM loss erodes the maintenance margin.
Pledged collateral value (for the MTF position) falls below requirement.
User fails to pay accrued interest.

The exact trigger threshold varies; typically when total margin used > 90% of margin available.

How to fix an 'order rejected: insufficient margin' error on Zerodha

Tue, 12 May 2026 00:00:00 +0000

When Kite rejects an order with the message “order rejected: insufficient margin”, the Zerodha Risk Management System (RMS) has determined that your available margin balance is below the minimum required to open or carry the requested position. This is one of the most common rejection codes across equity intraday, derivatives, commodity, and currency segments.

The rejection is protective: it prevents your account from going into a debit balance that would trigger a margin-call or auction process. Understanding why it fires and how to resolve it quickly can save substantial time during live market hours.

How to fix an 'order rejected: RMS' error on Zerodha

Tue, 12 May 2026 00:00:00 +0000

When Kite rejects an order with a message beginning “RMS:”, Zerodha’s internal Risk Management System has blocked the order before it reached the exchange. RMS is a pre-trade validation engine that checks margin, position limits, scrip restrictions, OI caps, and other broker-level risk parameters. The sub-code that follows “RMS:” identifies the specific check that failed.

Unlike exchange-level rejections (which carry NSE or BSE error codes), RMS rejections are issued by Zerodha’s servers. The exchange never processes a RMS-rejected order, so there is no exchange acknowledgement number for such orders.