FYERS RMS Policy - Ensuring Safe Trading Practices

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...

ScenarioOutcome
You try to buy options beyond the 20% rangeYou will be restricted from executing the trade
Your position exceeds a 50% MTM lossThe RMS team may square off the position to limit losses
You wish to use a market order for stock optionsMarket orders are restricted due to low liquidity in far OTM stock options
You want to avoid RMS square-offEnsure 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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