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.
For more content, you can visit:
What if...
| Scenario | Solution |
|---|
| 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
Related Articles
What Happens If I Don’t Square Off My Intraday F&O, Currency, or Commodity Positions Before Market Close?
At FYERS, if you don’t manually close your intraday F&O, currency, or commodity positions before the market closes, our Risk Management System (RMS) will automatically take necessary steps to manage overnight exposure and safeguard your account from ...
What Happens When an In-the-Money Commodity Options Contract Expires?
At FYERS, when an in-the-money (ITM) commodity options contract expires, it does not settle in cash like equity or index options. Instead, the option is automatically exercised and converted into a futures position of the underlying commodity, such ...
How Are Futures Margins Determined in FYERS?
Futures margin is the capital that must be available in your FYERS account to open and hold a futures position. Margins are not fixed. They change with exchange risk models, volatility, liquidity, and regulatory rules. You can always check the live ...
How Does Intraday Futures Trading Work in FYERS?
Intraday futures trading at FYERS lets you open and close futures positions within the same trading day. Leverage depends on exchange-prescribed margins for each contract, and under peak margin rules, intraday and overnight margin requirements are ...
What Are the Intraday Square-Off Timings at FYERS?
Intraday positions must be closed before the applicable square-off time to avoid unintended overnight risks. FYERS initiates automated square-off through Risk Management System (RMS), and the cut-off time varies depending on the segment. Intraday ...