In this post, we will look at common errors on trading platforms which are occurred while trading.
Security is not allowed to trade in this market
This error is most common in trading platforms. The issue generally occurs when
1. We place the order when markets are not open. It is also possible you get the same error if you place an order after the pre-open session and before the market opens (9:07 am-9:15 am).
2. There could be a case that the security you want to buy is suspended for trading. (you can check the bid-ask rates before placing the order)
3. Sometimes when we trade-in options that are very far away like (+-30% from the current market price) then also this error occurs.
Market orders for stock options are blocked due to illiquidity
This error is very common when we trade-in options. As we all know that in India, the Options market is not very liquid (except Nifty & BankNifty index options), which means that there are not enough buyers and sellers available in every option for trading. Due to this reason, brokers do not allow market orders on options.
Under such cases, we either have to use a market limit order or need to close the trade manually.
Strike price is outside the allowed range. Try a strike closer to the spot price
This error occurs when we trade-in Nifty or BankNifty Index options. Most of the times broker has a limit prescribed under which it allows its client to trade in nifty or bank nifty options.
When this limit prescribed by exchange crosses a threshold then broker clients are stopped from taking any fresh positions.
RMS:Rule: Option Strike price based on Ltp percentage for entity account-ID across exchange across segment across product
This error is caused when we try to buy or sell a very far OTM or very deep ITM option. These are usually due to the restriction imposed by the broker as per rules prescribed by exchanges. Every broker is allowed to work within certain open interest and when that OI (open interest) crosses a threshold, fresh positions in that strike price is banned.