Zerodha Experiences Technical Glitch Blocking Market Orders in Index Options Until 9:16 am

Market Volatility Triggers Brokerage Response

Zerodha, a low-cost brokerage, has temporarily blocked market orders in index options until 9:16 am on March 4 due to expected volatility. The decision aims to mitigate potential losses from market fluctuations.

The move is in response to heightened market volatility, fueled by the US-Iran conflict. This has led to a significant decline in Asian indices, with the KOSPI experiencing its worst losses since August 2024. The KOSPI has plummeted 14% in the last three sessions, with a 2.5% decline in the opening trade and an extension of losses to 11%.

Indices across Asia have fallen sharply for the third consecutive session, driven by concerns over disruption in oil supplies and potential higher energy costs. Japan's Nikkei slid 2.5% in a third straight session of losses, reflecting the impact on major energy importers like Japan and South Korea.

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In response to the increased market volatility, Zerodha recommends using market protection orders instead of market orders in index options to minimize potential losses.