What happens if losses exceed funds in your account?
In leveraged trading or high-volatility conditions, there’s a risk that market losses can exceed the funds available in your FYERS account. It’s important to know the implications and actions required if this happens.
- If your account reflects a negative balance due to loss or margin shortfall, you are required to settle the dues immediately.
- FYERS may send alerts or initiate square-offs to limit exposure, but it remains your responsibility to cover any deficit.
Consequence of Non-Payment
- Shortfall Penalties:
If dues are not settled on time, a penalty will be charged on the outstanding amount as per regulatory norms. - Account Restrictions:
Continuous defaults may lead to temporary trading restrictions or limited access to margin-based trading.
Where to Learn More
We recommend reading our detailed blog post: All About Margin Shortfall And Penalties
What If...
| Scenario | What You Can Do |
|---|
| Your balance goes negative after market close | Add funds immediately to avoid penalties. |
| You can't settle the shortfall the same day | Contact FYERS Support to understand resolution steps. |
| You want to avoid such situations | Monitor margin reports and risk alerts proactively, especially during volatile sessions. |
Tip: Enable all margin and risk notifications in your FYERS app to stay updated on your position status in real time.
Last updated: 17 Jun 2025
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