Hi, I had an open position for BANKNIFTY1961330800PE today (Sell) and one open SLM order in a Trigger Pending State. When I tried to exit BANKNIFTY1961330800PE with MIS market order at around 11:59 when Bank nifty was at 30658, my exit order (Buy) got rejected with the following message "Strike price is outside the allowed range. Try a strike closer to the spot price."
This has happened a couple of times when I was not allowed to exit my current open position with the same error message. The workaround is I have to cancel my Pending SLM Buy order and then try to exit.
Is there any reason for this weird behavior or its a known issue from Zerodha? IMO, I should be allowed to exit my open order irrespective of its strike price.
@humble_trader, For Equity and Futures, you can place 2 legs of orders without blocking additional margin(or being treated as a fresh position). However, for options, only 1 order is allowed. Since you already had the pending SLM order, the market exit order was treated as a fresh buy position, leading to the rejection. Since the strike wasn't allowed to trade today, it got rejected, otherwise, it would have gone through with additional margin block(which would have been later released when the order was completed).
For Equity and Futures, you can place 2 legs of orders without blocking additional margin(or being treated as a fresh position). However, for options, only 1 order is allowed. Since you already had the pending SLM order, the market exit order was treated as a fresh buy position, leading to the rejection. Since the strike wasn't allowed to trade today, it got rejected, otherwise, it would have gone through with additional margin block(which would have been later released when the order was completed).