We enabled participation in auction markets in 2023, and someone told me a few small prop brokers who were making money on auctions were apparently hit pretty hard because liquidity improved and spreads tightened. All of this with just ~25,000 of our 1.7Cr+ clients participating in auctions in the past year.

Auctions are held to procure shares when a seller fails to deliver shares and a trade results in short delivery. In auctions, shares are typically purchased at a significant premium to the last traded price due to illiquidity.

We are probably the only major broker that allows retail investors to participate in these auctions, and participation is steadily picking up pace.

By the way, if you have a stock that’s eligible for auction, you can sell it at a premium and make an almost risk-free profit. The auction window opens at ~2:30 PM for 30 minutes. Eligible stocks show up under Bids → Auctions on Kite.

Learn more about auction markets here.

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