Why Is My Order Rejected for Low Liquidity?
Punch blocks orders on contracts with very low trading volume to protect you from poor fills and execution risk.
Written By Archit Sunat
Last updated 27 days ago
Why This Happens
When you see the message "Trading is not allowed in this script due to less liquidity," it means the contract you tried to trade does not have enough active buyers and sellers. Punch restricts trading on illiquid contracts to protect you from situations where your order might not get filled or might execute at a very unfavorable price.
What You Can Do
Try trading a more liquid contract instead. For options, this usually means choosing a strike price closer to the current market price (near-the-money) or an expiry with higher trading volume. If you believe the contract should be tradeable, reach out to Punch support for clarification.