How can I prevent my open positions from being squared off due to Margin Shortfall?
Maintaining sufficient margin is key to avoiding auto square-off of your open positions during volatile market movements. FYERS initiates the square-off process when your available margin falls below the required threshold for your open trades.
How to Avoid Position Square-Off
- Monitor Margin Status Frequently: Use the FYERS platform to track your margin usage and remaining balance in real-time.
- Add Funds Promptly: If your margin is falling, top up your account with additional funds to ensure your available margin exceeds the minimum required.
- Understand Margin Requirements: Each instrument has a margin percentage based on its volatility and segment. Refer to the Margin Calculator for exact values.
- Plan for Volatility: During events like earnings, macro announcements, or expiry weeks, keep extra buffer margin to handle sudden price movements.
What If...
| Scenario | What You Can Do |
|---|
| You receive a margin shortfall alert | Add funds immediately to avoid auto square-off. |
| You’re unable to add funds in time | Reduce exposure manually by squaring off part of your position. |
| You're unsure about your margin status | Check your live margin on the FYERS Web, App, or API dashboard. |
Tip: Set alert notifications in the FYERS app for real-time updates on margin shortfall and risk management actions.
Last updated: 18 Jun 2025
Related Articles
What happens to my margin if the stock moves against my favour?
The margin blocked during a trade acts as a safeguard against adverse price movements. At FYERS, we typically block slightly more than the minimum required margin to provide a cushion. This extra buffer helps prevent positions from being prematurely ...
How is Margin Trading different from a Cash segment transaction?
Understanding the difference between cash segment trading and margin trading is important when choosing how to invest or trade. While both are modes of buying and selling securities, they differ in settlement timelines, capital requirements, and ...
What is Margin trading?
Margin trading allows you to take larger trading positions than what your current cash or holdings would normally allow. By using leverage, you can buy or sell more shares without having to provide 100% of the transaction value upfront. How margin ...
What happens if the losses incurred are higher than the total margin blocked?
Trading with leverage involves risk, and at FYERS, we follow a strict risk management process to protect both the investor and the system. If your trading position incurs losses that exceed the margin initially blocked, specific actions are ...
What is Margin Amount in Trading?
Margin amount is the minimum amount of funds or collateral you need to place a trade in Futures or to short Options. It acts as a security deposit and enables you to take positions much larger than your upfront capital by using leverage. What does ...