Zerodha Introduces WhatsApp-Based Emergency Trading Backup; Kamath Tells How To Cancel Orders, Exit Positions
However, no new orders or advanced trading functions are available through this backup route.
Zerodha unveiled a WhatsApp-based emergency trading mode on Thursday. Chief Executive Officer Nithin Kamath, in a video, explained how the users can cancel orders or exit positions if its main Kite web and mobile platforms become inaccessible during market hours.
Trading platforms are made using complex and interconnected systems — from exchange links via leased lines to cloud-hosted services and physical data centres. However, despite the multiple redundancies in place, a failure at any point in this chain can disrupt operations of the platform.
"One hiccup anywhere from exchange connections to cloud servers can create an issue. Over the years, we've built tons of safeguards and redundancies, but we're still paranoid," said Kamath in a post on social media.
Zerodha says it has spent years building safeguards, including “sharding” its Order Management System across separate data centres, to prevent issues from spreading.
According to a post on Zerodha's website, the new WhatsApp backup system is entirely independent of Kite’s infrastructure, which is hosted on Amazon AWS and protected by Cloudflare.
The backup system according to the platform runs on Microsoft Azure and uses WhatsApp’s “Flow” user interface. It connects directly to Zerodha’s OMS silos without relying on Kite’s software or its primary hosting providers.
In the event of a disaster scenario, clients can initiate the backup by saving a contact number and sending “Hi” on WhatsApp. After which the customers can complete authentication with their Zerodha ID, PAN, and an OTP.
Once verified, users can view their holdings, check margins, see open orders and positions, and cancel or square them off. However, no new orders or advanced trading functions are available through this backup route.
Zerodha chose WhatsApp for its ubiquity, separate infrastructure from major cloud providers, and its secure, structured interface for basic actions. This avoids exposing a public backup trading URL, which could require the same protection systems as Kite and undermine its independence.
While this is not a replacement for Kite or a full-featured platform, it is an additional safeguard for WhatsApp users. For those without WhatsApp, existing redundancies within Kite remain, alongside the option to trade via phone.
