FYERS RMS Policy - Ensuring Safe Trading Practices

What is FYERS RMS policy for trading?

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:
  1. 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.
  2. What's the Restriction:
    1. Index Options: Buying is permitted within a 20% strike range.
    2. 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:
  1. When it Applies: If the MTM loss for a particular position exceeds 50% in your account, our Risk management team steps in.
  2. Action Taken: We monitor these flagged positions and may square them off to ensure account integrity.
  3. Avoiding RMS Square-Off: To avoid potential RMS square-offs, consider bringing in additional funds to maintain your positions across exchanges.
Note:
  1. 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.
  2. While we aim for prompt communication, you can also keep an eye on the Notice Board for real-time updates.
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