Guide for Cancellation of Shares or Placing Cancel Order

In stock trading, orders may be canceled due to price changes, strategy adjustments, or errors. Understanding how to cancel orders is crucial for effective trade management. This guide covers the types of cancellations, the process, and key considerations.

Cancellation in stock trading refers to withdrawing a pending order before execution, not reversing a completed trade. This is distinct from corporate share cancellations, such as buybacks, which reduce a company's total share count. We focus on retail trading order cancellations here.

Depending on the type of order placed, the cancellation process and timing can differ:

Market Orders

Market orders are executed almost instantly at current market prices. Therefore, once a market order is placed and processed, it cannot be cancelled.

Limit Orders

Limit orders specify the price at which the investor is willing to buy or sell. These are not executed immediately and can be cancelled at any time before execution.

Stop-Loss Orders

These orders trigger when the stock hits a specific price point. If the stop-loss condition is not yet met and the order is still pending, you can cancel it.

After Market Orders (AMO)

These are orders placed after market hours. You can cancel them before the market opens, provided they have not been sent for execution.

A share order can be cancelled only if:

• The order is still in the pending state (not executed).
  

• The trading window is open (or before the order is placed for execution).
  

• The platform or broker allows real-time cancellation (most do).

Once an order is executed, cancellation is not possible, and a reverse trade would need to be initiated to exit the position.

Here is a general guide for cancelling share orders through online trading platforms:

Step 1: Log in to your trading account on the respective platform (Zerodha, Groww, Upstox, etc.).

Step 2: Go to the ‘Order Book’ section from the main dashboard.

Step 3: Locate the open/pending order you wish to cancel.

Step 4: Click on the ‘Cancel’ button/icon next to the order.

Step 5: Confirm cancellation in the prompt.

Step 6: You should see the order status change to ‘Cancelled’.

This process is similar across mobile and web platforms. For broker-assisted orders, you can call your broker with the order ID and request a cancellation — subject to timing and execution status.

Most online trading platforms do not charge any fee for cancelling an order. However, always check with your brokerage for specific policies.

Broker-assisted cancellations (especially for institutional or large trades) may involve service fees.

Before cancelling an order, keep these points in mind:

• Timing is key: If the order has already moved to execution, it cannot be stopped.
  

• Check price movements: If the share price is moving fast, a cancelled order may miss a good opportunity.
  

• Watch for system delays: On high-volume days, trading systems may have slight lags — act early if you intend to cancel.
  

• Monitor notifications: Always check for SMS or in-app updates confirming successful cancellation.
  

• Don’t panic cancel: Avoid cancelling just because the stock is volatile — stick to your strategy unless you have a valid reason.
  

Separately, cancellation of shares can also refer to actions taken by companies. In such cases, shares are bought back and extinguished, reducing the total number of outstanding shares. This is typically done:

• During a buyback
  

• After forfeiture
  

• When converting preferred shares
  

These actions are governed by SEBI regulations and do not involve individual investor cancellation.

Once an order is cancelled:

• It will no longer be queued or visible in the active order book
  

• No charges are applied
  

• Your margin or blocked funds are released back into your trading account

If you still wish to trade that stock, you will need to place a fresh order.

AMOs can be canceled before processing, but once placed in the exchange system after market open, cancellation isn't allowed. Check the platform's cutoff time, usually around 8:45 AM for NSE.

Canceling a share order is crucial for retail investors. Whether correcting an entry or adjusting strategy, knowing when and how to cancel gives you better control over your trades. Always monitor your order book and stay updated.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.