Create auction-markets-on-kite.md

Author: Shruthi1204

content/blog/auction-markets-on-kite.md

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+---
+date: '2026-04-29'
+title: Auction markets on Kite
+tags: [zerodha,products]
+author: nithin
+link: https://x.com/Nithin0dha/status/2049455834384740698?s=20
+post_type: tweet
+description: Auctions are held to procure...
+
+---
+We enabled participation in auction markets in 2023, and someone told me a few small prop brokers who were making money on auctions were apparently hit pretty hard because liquidity improved and spreads tightened. All of this with just ~25,000 of our 1.7Cr+ clients participating in auctions in the past year.
+
+Auctions are held to procure shares when a seller fails to deliver shares and a trade results in short delivery. In auctions, shares are typically purchased at a significant premium to the last traded price due to illiquidity.
+
+We are probably the only major broker that allows retail investors to participate in these auctions, and participation is steadily picking up pace. 
+
+By the way, if you have a stock that's eligible for auction, you can sell it at a premium and make an almost risk-free profit. The auction window opens at ~2:30 PM for 30 minutes. Eligible stocks show up under Bids → Auctions on Kite.
+
+[Learn more about auction markets here.](https://support.zerodha.com/category/trading-and-markets/general-kite/auctions/articles/participation-in-the-auction)