Loading
Market Intelligence › Basic Terminologies
The cutoff time, margin shortfall, and the fill you get at that moment
Published by The Retail Trader · JUL 29, 2026 · Order Flow
If you do not close an intraday position yourself, the broker does it. This happens for two reasons: the cutoff time has arrived, or the margin has run short. In both cases the fill is not in your control.
Time-based square-off happens on a fixed schedule, and each broker's time can differ slightly. It is not an exchange rule; it is the broker's risk rule.
Margin-based square-off happens when losses grow and the available margin falls below the required margin. It can happen at any time, and it does not wait.
The fill on an auto square-off is often poor:
• It is a market order, so you take the full slippage.
• Around the cutoff, a great many accounts are squared off at once.
• Some brokers also charge a separate fee for it.
• In an illiquid contract the fill can come far away from the price.
Closing a position yourself is always cheaper, even if it is at a loss. Waiting for the broker's square-off is a hope that something will change in the last minute, and the price of that hope is paid in slippage every time.
This article is for educational purposes only. It is not a buy or sell recommendation, not a claim of guaranteed returns, and not advice. Rules, rates and mechanics change from time to time at the exchanges, SEBI and the RBI, so verify every number yourself with your broker or an official source.