What is FYERS RMS policy for trading?
At FYERS, we are committed to providing a safe and efficient trading environment for our users. As part of this commitment, we have a comprehensive Risk Management System (RMS) policy to safeguard your trading interests.
RMS Policy on Options Buying
Why the Restriction?
- OTM Strikes beyond a specific range can often become highly illiquid, which leads to erratic trades due to vast bid/offer spreads.
What’s the Restriction?
- Index Options: Buying is permitted within a 20% strike range from the Last Traded Price (LTP).
- Stock Options: Similarly, the allowed range for buying stock options is capped at 20% from the LTP.
- If you're an Index options seller, this restriction does not affect you.
RMS Policy for Bracket and Cover Orders (BO/CO)
- BO/CO Orders are allowed 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 will step in.
Action Taken:
- We monitor these flagged positions and may square them off to maintain account integrity and manage risk.
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 may be implemented without prior notification.
- For real-time updates, we recommend keeping an eye on the Notice Board.
What if...
| Scenario | Outcome |
|---|
| You try to buy options beyond the 20% range | You will be restricted from executing the trade |
| Your position exceeds a 50% MTM loss | The RMS team may square off the position to limit losses |
| You wish to use a market order for stock options | Market orders are restricted due to low liquidity in far OTM stock options |
| You want to avoid RMS square-off | Ensure you have sufficient margin or add funds to your account to maintain positions |
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Last updated: 27 Jun 2025
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