Pre-Trade Check

Before any order lands on Kite, run a pre-flight. This skill is the gate between "I want to trade" and place_order.

1. Parse intent

From the user's prompt, extract:

• symbol (required) — default exchange NSE if not prefixed
• quantity (required)
• side — BUY or SELL (default BUY)
• order type — MARKET or LIMIT with price (default MARKET)
• product — CNC (delivery) or MIS (intraday); ask if ambiguous

If any required field is missing, ask before calling tools. Don't guess quantity.

2. Prefer the composite tool

order_risk_report (also surfaced as pre_trade_check in some deployments) bundles the five checks below into one MCP call. Use it first:

• It returns current price, margin check, portfolio impact, existing positions, stop-loss

suggestions, warnings, and a recommendation (PROCEED / PROCEED WITH CAUTION / BLOCKED).

• If available, skip straight to step 4 (present the report) with the composite output.

3. Fall back to individual tools

If no composite is available, call in parallel where possible:

1. get_ltp — current price for the instrument.
2. get_order_margins — margin required for this specific order.
3. get_margins — available funds.
4. get_positions — existing exposure in this symbol.
5. portfolio_concentration — current HHI / top-position weights.

4. Present the pre-flight report

## Pre-Trade Check: <SIDE> <QTY> <SYMBOL>

### Current Price
- LTP: <price> (<today's change>%)
- Order Type: <MARKET | LIMIT @ price>
- Order Value: <qty x price>

### Margin Check
- Required: <amt>
- Available: <amt>
- Utilization after trade: <pct>%
- Status: OK | WARNING | INSUFFICIENT

### Portfolio Impact
- This trade as % of portfolio: <pct>%
- Top-5 concentration after trade: <pct>%
- Existing position in this symbol: none | <qty, avg price, unrealized P&L>

### Risk Flags
<List concerns — only include applicable ones:>
- Margin utilization >70% after trade
- Concentration in one stock >15% after trade
- Trading against existing position (SELL when you already have open SELL, etc.)
- Order value >5% of portfolio
- MARKET order in a thinly-traded symbol

### Stop-Loss Suggestion
- For CNC (delivery): SL ~2% below entry → <price>
- For MIS (intraday): SL ~1% below entry → <price>
- GTT two-leg: trigger at SL + target; ask user before placing

### Recommendation
PROCEED | PROCEED WITH CAUTION | RECONSIDER

5. Wait for explicit confirmation

• Never call place_order until the user says "yes" / "place it" / "go ahead" after seeing the

report.

• If recommendation is RECONSIDER, ask the user to confirm they want to override before proceeding.
• If margin is INSUFFICIENT, stop. Don't place the order.

6. Place the order

When confirmed, call place_order with:

• variety: "regular"
• exchange: NSE | BSE (from symbol)
• tradingsymbol, transaction_type, quantity
• order_type: MARKET | LIMIT, price (if LIMIT)
• product: CNC | MIS | NRML
• market_protection: -1 (auto) for MARKET orders — SEBI-compliant default

7. Follow up with stop-loss

After a BUY is filled (confirm via get_order_history):

• For CNC: offer place_gtt_order with two-leg trigger — SL ~2% below, target ~5% above (ask

user to confirm percentages).

• For MIS: suggest placing an SL-M order via place_order instead (GTT doesn't apply to

intraday).

Guardrails

• NEVER place an order without the pre-flight report first, unless the user explicitly opts into

fast mode ("skip checks, place now" or --fast).

• NEVER claim an entry "will work" or a target "will hit". Use factual framing around current

price, margin, concentration.

• NEVER ignore an INSUFFICIENT margin result.
• If the user is trying to trade after 3:20 PM with MIS product, remind them auto-square-off is

imminent.

• If Kite token is expired, stop and ask them to re-authenticate.