Auto Square off Block — Best Answer & example updated 2021

When you place an Intraday order and message display on your screen that auto Square off block, it is quite confusing for the new traders. However, the online trading platforms keep it to make trading simple for retail investors.

Let’s understand the means of Auto Square off Block and related terms in this post.

What is Auto Square Off?

A square off is a trading strategy in which a trader purchases or sells shares for a day in the expectation of profiting. By the conclusion of the day, the investors should have closed their positions.

Some brokerage firms offer an auto square off service, in which the positions are instantly squared off at a predefined period.

Charges of Auto Square off

If you will not square off your position and it remains open after the given timings some brokerage firms are also charging a penalty for that. Mostly it is around rs. 50/- Per trade.

Now let’s talk about auto square off block.

What is Auto Square Off Block?

After the Risk Management System (RMS) auto square off time, which is 3:20 pm for equities and 3:25 pm for Futures and Options markets, MIS orders cannot be placed. Currency markets close at 4:45 p.m., while commodity markets close at 11:05 p.m.

If a trader tries to put a MIS order past the cut-off periods, the order will be denied and “ Auto Square Off Block” or “RMS: Auto square off block” errors will appear.

Example of Auto Square off Block

Let’s assume a trader hears news about xyz company before it is out in the market and wants to cash the trend.

If he didn’t look at the time and directly try to place an order and the timing is around 3:22 pm. The order will be not executed and Screen display the error Auto Square Off Block.

So please keep in mind that timing is important to avoid this error.

Originally published at https://profitmust.com on May 14, 2021.