What is the FYERS RMS policy?

What Is the FYERS RMS Policy?

FYERS uses a Risk Management System (RMS) to protect clients from poor liquidity, extreme price moves, and margin risks. RMS checks can limit certain order types, restrict far strikes, and trigger risk-based square-offs when losses or exposure breach internal thresholds.

Options buying range (liquidity protection)

  • Why the restriction: Deep OTM strikes can be illiquid with wide bid–ask spreads, creating poor fills.
  • What is allowed:
    • Index options: Buying permitted within 20% of the underlying LTP.
    • Stock options: Buying permitted within 20% of the underlying LTP.
  • Note: The above is a buy-side restriction. Index option sellers are not impacted by this specific buy-range rule.

EOD and real-time MTM risk actions

  • Trigger: If MTM loss on a position exceeds 50%, RMS may intervene.
  • Possible action: Positions can be squared off to protect account integrity and manage risk.
  • How to avoid: Maintain sufficient margins or add funds if MTM pressure rises.

Market order protections in low-liquidity options

  • Stock options: Market orders can be restricted, especially in far OTM or thinly traded contracts. Use limit orders for price control.

Policy updates

  • RMS thresholds and rules can change with market conditions and volatility. Changes may be applied without prior notice.
  • For the current status, check the Notice Board on the platform.
Trade liquid strikes within the permitted range, prefer limit orders in thin options, and maintain a margin buffer so MTM swings do not trigger RMS actions.

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What if...

ScenarioSolution
I try to buy options beyond the 20% rangeOrder is restricted. Place within the permitted band or choose a nearer strike.
My position crosses 50% MTM lossRMS may square off the position to limit risk.
I sent a market order in stock optionsMay be rejected or restricted in illiquid or far OTM strikes. Use limit orders.
I want to avoid the RMS square-offAdd funds, reduce size, or hedge to restore required margins.

Last updated: 07 Nov 2025