Will My Algo Trades Work If My DDPI Is Disabled? When Should I Enable It?
What is DDPI?
DDPI (Demat Debit and Pledge Instruction) is an authorization that allows your broker to debit securities from your Demat account for specific transactions, such as selling holdings.
Will my Algo Trades work if DDPI is deactivated?
Yes, for trading algos, there is no need to enable DDPI. Trading algo positions are taken in options and do not go into your Demat holdings, so DDPI is not required for these trades.
However, if you deploy investing algos, you will need to enable DDPI because the delivery stocks purchased by the algo are added to your Demat holdings. DDPI is required to allow the algo to square off or sell these holdings when the predefined exit conditions are met.
When should I enable DDPI?
If you are planning to deploy an investing algo, you can enable DDPI through your broker account. If you need assistance, you can reach out to your broker’s support team for guidance.
Once DDPI has been enabled, de-link and then re-link your broker account on Stratzy, preferably during non-market hours, before deploying the investing algo.
In short:
- Trading Algos → DDPI not required
- Investing Algos → DDPI required
- Enable DDPI through your broker account
- After enabling it, de-link and re-link your broker on Stratzy, preferably during non-market hours
1 Like