Nudges are real-time alerts shown on Kite, our trading platform, that warn users of risks associated with a particular trade before they execute the trade. Nudge alerts show up on the order window.
Here are a few instances where a Nudge is displayed:
This nudge is displayed when trading in T2T stocks. Exchanges move stocks that are extremely speculative or are suspected of price manipulation to the Trade to Trade (T2T) segment. Intraday trades are not allowed in the T2T segment since all buy and sell transactions will be compulsorily delivered (T+1 settlement).
With delivery trades, the stocks sold are first debited from the demat account, and the stocks purchased are then credited to the demat account on T+1 day.
- For stocks circulated by unauthorised or unregistered entities via social media.
This nudge is displayed if stock tips are circulated to manipulate a stock's price. See I am getting a lot of unsolicited stocks tips SMS messages ever since I opened a trading account, how do I stop these? to know how to report such messages.
- For stocks undergoing corporate action such as bonus or stock split.
This nudge is displayed to inform the users that the sudden drop in the stock price is due to a corporate action and not because of a loss.
- For stocks undergoing Insolvency Resolution Process (IRP).
This nudge is displayed for companies that are undergoing IRP, informing you about the risks of investing in such companies. There is a high chance of losing your entire investment if the shares are extinguished as part of the acquisition of the company.
- For illiquid stocks.
Stocks with market cap under ₹100 crores tend to be illiquid. They are also subject to price manipulation through pump and dump to move money illegally from one account to another.
After you click on Buy , you will receive a secondary prompt for this.
- For Rights entitlement (RE).
This nudge is displayed to educate you that REs are temporary listed rights which will lapse if not applied for, with the chances of losing your entire investment. Hence, trading REs can be risky.
- For stocks to be suspended.
This nudge is displayed for stocks that are going to be suspended by exchanges. Buying these stocks could result in losing your entire capital invested. The reasons for suspension can vary.
