What happens if I don’t square off my intraday position before the market closes? Is there any penalty for it?

When participating in intraday trading, it’s crucial to understand the implications of not closing your positions before the market’s closing bell. The exchange mandates an automatic square-off procedure if you fail to “square off” your intraday trades. This means your broker will close your open positions on your behalf as the market concludes trading for the day. 

This standard exchange rule applies across various trading platforms, ensuring all intraday positions are settled within the trading session. 

Importantly, unlike some other financial actions, there is generally no direct monetary penalty imposed by the exchange for this automatic square-off. However, it’s always prudent to check your broker’s specific terms and conditions to avoid any unexpected charges.