There are different types of errors you may face sometime during a trading season. The error which most of the people don’t understand is “Security is not Allowed to Trade in this Market“. When you try to buy a stock or it’s future or option, this error may occur on your screen.
Let’s discuss what it means and why it comes during trading in any stock.
Table of Contents
Security is not Allowed to Trade in this Market Meaning
This error means that the stock or commodity in which you want to open a position is not trading right now on exchange. However, the reasons can be different due to which this security is not trading on exchange right now.
In this kind of situation you won’t be able to make any buy or sell trade in that stock or commodity. Instead of trying to trade again you must find out the season behind it.
Reasons for Security is not Allowed to Trade in this Market
While talking about the reasons, There might be following reasons behind it.
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IPO Pre-opening time
On the date on which a new IPO gets listed in the market from 9:45 am to 9:59 am you will witness this message if you try to buy or sell the security before it starts trading at 10:00 am. You can set a GTT or stop loss during this time but buying & selling will only start at 10 am.
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Test market timings
During the test market timings which usually take place on Saturday or Sunday, if you are trying to put any buy or sell offer other than AMO other this message will appear on your screen. Reason behind that is simple as their testing season is going on and the actual market is closed.
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Due to Banned from exchange
If you are trying to buy or sell a stock which didn’t pay an exchange fee or some legal action is going on in that stock regarding trading then also this error slash on your screen. You can see status like Periodic call auction or due to surveillance measures next to share price on BSE in this kind of stocks as shown in below picture.
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If Stock is not available in F&O segment
This can be another reason for this message. There are only limited stocks available in the F & O segment which are from Top 500 stocks. Stock Selection for F&O Segment is dependent on various criteria which is set by SEBI. So if a stock is not available in F&O you cannot trade it there.
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Illiquidity
This can be also a reason that some securities are stopped from trading ELCID Investments is a perfect example of it. The value of per share is more than 1 lakh but it is trading at 14 Rupees only on BSE. That’s no trade happening in this company and it is not eligible to trade.
Importance of Banning Securities on Exchange
In case of legal issues or fraud in trading it is mainly to help the retail investors to not get trapped in bad situations. Companies also avoid doing bad things & maintain everything correctly as they know exchange can ban them for doing anything wrong. so you might see messgae of not allowed to trade due to risk and surveillance measures.
Conclusion
These kinds of terms are important for an investor or trader to learn as it helps them do reduce the chances of losses. By knowing these kinds of terms you can avoid bad situations in the stock market.
This is all from our side regarding security is not allowed to trade in this market. Let us know your views about transaction not allowed in current instrument state in the comment section.
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FAQ About security not allowed to trade in this market
transaction not allowed in current instrument state?
If a stock is sold on a Settlement holiday or an order is put after the market has closed, the error will take place.
Cash sell orders are not allowed on the security?
It means security is not allowed to trade in this market.
Security is not allowed to trade in pre-open?
This means Security is High volatile and illiquid. so exchanges don't allow it to trade in pre open.
16145 error Zerodha
It means security is not allowed to trade in this market.
How to delete rejected order in Zerodha?
There is no need to delete the order if it got rejected. It is not going to be reactive again.
