Kill Switch: Zerodha introduces feature to help users take a break from trading
Zerodha is working on setting up the Kill Switch to be triggered automatically, based on a predefined loss or drawdown level fixed by a user.
June 23, 2021 / 10:19 AM IST
Zerodha founder Nithin Kamath (File image)
Discount broker Zerodha has introduced a 'Kill Switch' as a new Nudge on its Kite app, which will let its users take a break from trading and prevent over-trading.
"If you're making losses, this new feature helps with your trading discipline and risk management by allowing you to instantly disable trading in one or more segments on Kite, forcing you to take a break from trading," Kamath said in a post published on the Zerodha website.
Trading in a segment can be re-activated only 12 hours after it is disabled.
The company is also working on setting up the Kill Switch to be triggered automatically, based on a predefined loss or drawdown level fixed by a user.
"We are also working on allowing you to define the maximum order and position sizes for every instrument as a percentage of your overall trading capital. This is to help you avoid taking large positions due to anxiety induced by greed or fear when trading," Kamath said.
The Kill Switch will also help users to temporarily deactivate their trading account or specific segments. Zerodha users will need to exit all open positions and cancel all open orders before disabling a segment.
Traders can disable the visiting Console -> Accounts -> Segments.