Knowledge Base

If you trade intraday, it is important to know that any open position you haven’t closed by a certain time will be squared off automatically by your broker. This is called auto square off, and missing the timing can result in additional charges.

What is auto square off?

When you take an intraday position meaning you buy or sell a stock with the intention of closing it the same day you must close it before the market ends. If you don’t, your broker will close it on your behalf. This is auto square off.

It exists to ensure you don’t accidentally carry an intraday position overnight, which your margin may not support.

When does auto square off happen?

The square off timing varies by segment:

• Equity intraday: 15 minutes before market close, i.e. 3:15 PM
• Commodity (non-agri): 25 minutes before market close

The buffer exists because markets can be volatile close to closing time. Squaring off a few minutes early gives enough liquidity for orders to go through at reasonable prices.

What charges apply if your position is auto squared off?

If Samco squares off your position, a flat auto square off charge of ₹50+GST per position is levied, over and above normal brokerage. To avoid this charge, always close your intraday positions manually before the auto square off window.