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.
Bracket & Cover Orders (BO/CO)
- Allowed: Across trading segments.
- Not allowed: Stock options, commodity options, and currency options.
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...
| Scenario | Outcome |
|---|
| I try to buy options beyond the 20% range | Order is restricted. Place within the permitted band or choose a nearer strike. |
| My position crosses 50% MTM loss | RMS may square off the position to limit risk. |
| I sent a market order in stock options | May be rejected or restricted in illiquid or far OTM strikes. Use limit orders. |
| I want to avoid the RMS square-off | Add funds, reduce size, or hedge to restore required margins. |
Last updated: 07 Nov 2025
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