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 automatically triggered.
How FYERS handles excess losses
- If the losses on a position approach or exceed the blocked margin, our Risk Management System (RMS) will automatically square off the open position.
- Any loss beyond the blocked margin will be debited from your remaining available balance in the account.
This mechanism is designed to limit potential liabilities and prevent further losses that could occur if the position remains open.
What if...
| Scenario | What to do |
|---|
| You receive a margin call or warning | Take immediate action—either add more funds or reduce your exposure |
| The account balance is insufficient to cover excess loss | Your ledger will reflect a debit balance and must be settled |
| You want to prevent auto square-off | Monitor margin usage closely or use stop-loss orders to manage risk proactively |
Last updated: 18 Jun 2025
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