How to fix a theoretical-price rejection on Zerodha

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

The rejection that asks you to “place your order around the theoretical price” or “around the fair value” appears on Kite when your order price sits too far from where the contract should trade, which happens most on illiquid F&O options. It is not the same as a price-band rejection , which is about the daily circuit limit. This rejection is a fair-value guardrail: in a thin option the last traded price can be stale and the bid-ask spread wide, so an order placed far from the theoretical price can fill at a poor price or be used to move money artificially between accounts. The fix is to place a limit order near fair value, inside the exchange’s protection band, rather than a market order at an extreme price.

Theoretical Price on WebNotes

How to fix a theoretical-price rejection on Zerodha