What are Call & Trade (Auto Square Off) Charges In India? By Espresso

What is Call and Trade?

When you decide to start intraday trading and open a trading account, the broker offers an online platform allowing you to enter trades and take positions on stocks. Digitization and advancement in technology have made it easier for people to buy and sell stocks by logging into the online trading platform.

 

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However, there can be times when you don’t have access to a computer or internet but would want to take a position on a stock. How do you ensure that you make the most of a trade opportunity? Read on to find out.

Call and Trade

If you are using an online trading account to place orders, then you need a computer and an internet connection. However, if you are travelling or at a place where you don’t have access to either of them, then you might miss out on opportunities that can help you earn profits. This is where a Call and Trade service comes in handy.

Call and Trade is a service offered by many brokers to ensure that their intraday trading customers don’t miss out on trading opportunities. If you have a trading account, then via this service, you can call a specific number and place an order to buy or sell shares. The executive who answers your call will take the details of the position that you want to take and place an order accordingly.

When you call and trade on a stock by selecting intraday trading as the order type, you are expected to call the broker to close your open positions before the end of the trading day. If you fail to do so, then the broker will use the auto square off privilege, where all open positions will be squared off by the broker offline.

Auto Square Off is an important element of a Call and Trade facility since you have to mandatorily square off your trades in intraday trading. Most brokers have a maximum time limit beyond which they exercise the right to auto square off all your open positions.

Call and Trade Charges

The call and trade charges can vary depending upon the broker and the type of brokerage plan selected by you. Before you pick up your phone to place an order, ensure that you check with your broker about the call and trade charges. Most brokers charge a flat fee plus brokerage if you use the call and trade service. These are debited via a ledger debit to your account for the number of trades you have done via a phone call. You must remember that call and trade charges will be over and above the brokerage, regulatory charges, and any other charges applicable with online trade.
Also Read: Unlimited Trading Plans with Zero Brokerage

Benefits of Call and Trade

  • All you need is a phone, and you can place an order regardless of where you are. This helps make the process extremely easy.
  • Brokers offering a call and trade facility have a strong verification system that helps to keep your information secure. Hence, there is no scope for information being compromised.
  • While placing an order on the online platform directly is the most convenient way to trade, if you don’t have access to the internet/computer, call and trade is less hassling than the offline paper Trading based order processes.
  • Brokers usually tend to offer call and trade services across various market segments like equity, derivatives, IPOs, etc.

Summing Up

Call and Trade can be a helpful service for traders who don’t have intermittent access to a computer and/or the internet. By calling a specified number provided by the stockbroker, they can place orders and buy or sell stocks.

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Frequently Asked Questions

When you place an intraday order, you take a position on a stock based on your assessment of the direction the stock price can take. However, since this is not a delivery-based trade, you are required to square off your position before the end of the day. When you call and trade, you are expected to square off your position by calling your broker. However, if you get busy or forget to call, the broker will square off all positions minutes before the end of the day. This is called auto square off in call and trade.

First, you need to check with your broker if he offers a call and trade service. If yes, then you need to check the features of the plan, steps taken to ensure data security, limits on the number of orders you can place, charges, etc. Remember, call and trade is an additional service offered to trading customers to help them trade even when they don’t have access to a computer or internet. It is a chargeable service.