At FYERS, we believe in fostering a safe and efficient trading environment. As part of our commitment to safeguarding your interests, we have set forth a comprehensive Risk Management System (RMS) policy. Here's a breakdown:
RMS Policy on Options Buying:
- Why the Restriction: OTM Strikes beyond a specific range can sometimes become highly illiquid. This illiquidity might lead to erratic trades due to vast bid/offer spreads.
- What's the Restriction:
- Index Options: Buying is permitted within a 20% strike range.
- Stock Options: The allowed range for buying is also capped at 20%. If you're an Index options seller, this restriction won't affect you.
RMS Policy for Bracket and Cover Orders (BO/CO):
BO/CO orders are permissible across all trading segments, except for stock, commodity, and currency options.
RMS Policy on Mark to Mark (MTM) Square-Off:
- When it Applies: If the MTM loss for a particular position exceeds 50% in your account, our Risk management team steps in.
- Action Taken: We monitor these flagged positions and may square them off to ensure account integrity.
- Avoiding RMS Square-Off: To avoid potential RMS square-offs, consider bringing in additional funds to maintain your positions across exchanges.
Note:
- RMS policies might undergo changes based on market conditions and prevailing volatility. These changes are at our discretion and might be implemented without prior notification.
- While we aim for prompt communication, you can also keep an eye on the Notice Board for real-time updates.
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