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.
For more content, you can visit –

    • Related Articles

    • What Happens if the Turnover Limit is Exceeded on FYERS?

      At FYERS, we maintain risk control measures to ensure a stable trading environment for all users. One such measure is the daily turnover cap. If your total trading turnover exceeds ₹15,000 Crores in a single trading day across all segments, your ...

    • Is trading in Far OTM options possible on FYERS?

      Yes, we offer a broad strike price range, enabling you to Buy/Sell Far Out of The Money (OTM) Options Contracts. Options Buying: Index Options: You can purchase OTM Options within a range of 20% from the Last Traded Price (LTP). Stock Options: ...

    • Why is latency important in trading?

      Latency plays a crucial role in trading because it determines how quickly your orders are executed in a fast-moving market. The lower the latency, the quicker your order reaches the exchange—giving you a better chance to trade at your intended price ...

    • Is BTST available in FYERS? If Yes, how much funds will be blocked?

      Yes, FYERS offers the BTST (Buy Today, Sell Tomorrow) facility, allowing clients to sell shares on T+1 day, even before they are credited to the Demat account. However, BTST is only enabled for a limited list of eligible stocks and series. Key ...

    • What does 'X' settlement or cash settlement mean in trading?

      In the trading world, “settlement” refers to the process of transferring securities from seller to buyer after a trade. Most trades settle with the delivery of actual shares. But in some cases, such as failure of delivery, an 'X' or cash settlement ...