How Can I Prevent My Open Positions From Being Squared Off Due to Margin Shortfall?
Maintaining a sufficient margin is the most effective way to avoid an automatic square-off of open positions during volatile markets. We at FYERS initiate risk actions when available margin falls below the exchange-required threshold for your open trades.
How to Avoid Position Square-Off
- Monitor margin live: Track Used Margin, Available Margin and Margin Shortfall on FYERS Web, App or Trader during market hours.
- Add funds in time: Top up before shortfall occurs so Available Margin stays above the minimum required for all open positions. For the process to add funds, refer to this article.
- Use the margin calculator: Check exact upfront and exposure requirements for each instrument using the FYERS Margin Calculator.
- Keep a safety buffer: Hold extra margin during earnings, events, or expiry weeks when margin requirements or volatility can rise quickly.
- Manage position size: Reduce quantity or hedge with offsetting positions to lower margin pressure.
- Review pledges and collateral: Ensure pledged collateral is approved and reflected in your margin well before you initiate trades.
Important: If a margin shortfall persists after alerts or intimation sent by us, our RMS team will take action and may square off positions at market price during the square-off window. Execution can involve slippage and square-off charges, so please add funds or reduce exposure in advance.
What If…
| Scenario | What you can do |
|---|
| You receive a margin shortfall alert | Add funds immediately or reduce position size. Confirm that the added funds reflect in your trading balance before the RMS square-off window. Add funds guide. |
| You cannot add funds in time | Manually square off part of your position or place a hedge to reduce margin needs. Prioritize the largest margin consumers first. |
| Your pledged collateral is not showing | Check pledge status and re-confirm approvals. Until collateral is visible as margin, treat it as unavailable and manage exposure accordingly. |
| You are unsure about current margin | View live margin on FYERS Web, App or Trader and cross-check the instrument requirement in the Margin Calculator. |
| You need assistance understanding a shortfall | Write to [email protected] or use the contact us page with order IDs and timestamps for a quick review. |
Tip: Set app notifications for margin and P&L, and consider placing exit orders in advance using Smart Limit or conditional strategies where applicable. Proactive exits often cost less than forced square-offs.
Last updated: 16 Dec 2025
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