Why Is My Options Order Rejected in FYERS?
Options orders can be rejected for several reasons, most of which relate to liquidity protection, risk management, or exchange rules. This article lists FYERS policies on market orders in options, common rejection causes, and the exact fixes to place your trade successfully.
FYERS' policy on market orders in options
- Current week and current month expiries: Market orders are allowed for options that expire in the current week or the current month, where liquidity is typically adequate.
- Next week, next month, and far expiries: Market orders are restricted. Use a limit order and specify your acceptable buy or sell price.
- BSE F&O contracts: Market orders are not permitted due to frequent illiquidity. FYERS applies Market Price Protection (MPP) that converts market orders to limit orders to avoid unfavourable fills.
Note: For low liquidity or far expiry contracts, prefer limit orders to control execution price.
Other common rejection causes and how to fix them
- Insufficient margin or premium hold: Add funds, reduce quantity, or place the hedge leg first. For blocked premium, square off or use Basket Orders so the combined margin is applied.
- Wrong order type for the contract: Switch from market to limit for next or far expiries, illiquid strikes, or BSE F&O.
- Price bands, LTP protection, or MPP limit breached: Adjust your limit price within the allowable band or widen your price while staying within protection limits.
- Lot size or freeze-quantity violations: Place orders in the exchange lot size and below the freeze quantity. Split large orders into smaller slices.
- Product type mismatch (MIS/CO/Intraday/Delivery): Choose the correct product. For carry-forward or delivery-sensitive legs, use intraday.
- Hedge sequence not followed: Execute the buy hedge first, then the short leg, or use Basket Orders for netted margin and smoother execution.
- Near-expiry delivery risk on stock options: If you do not want physical delivery, consider square-off or rolling before the cut-off. Brokers may restrict orders that increase delivery risk close to expiry.
- Trading halt, strike disabled, or illiquid contract: Check instrument status. Pick a more liquid strike or a nearer expiry.
- Exchange limits or position limits hit: Reduce quantity, close existing positions, or select a different strike or expiry.
- Collateral or pledge issues: Repledge collateral, account for haircuts, and ensure approved collateral is visible as margin.
- Session or validity issues: Verify market timings and use a supported validity (DAY or IOC as applicable).
For liquid current-expiry contracts, you may use market orders, but for far expiries or illiquid strikes, switch to limit orders, place hedges first, or use Basket Orders, and verify margin, bands, and lot sizes before sending.
What if...
| Scenario | Outcome |
|---|
| I place a market order on a next or far expiry | Order is rejected. Place a limit order instead. |
| I place a market order on BSE F&O | Rejected or converted to an MPP-based limit order. |
| I face a margin shortfall while creating a spread | Place the hedge leg first or use Basket Orders for combined margin. |
| My limit order is outside the allowed band | Adjust the limit price within permitted bands or closer to LTP. |
| Premium from a short option is blocked | Funds are held as cash collateral. Square off or wait for expiry to release. |
| I exceeded the freeze quantity or the wrong lot size | Reduce quantity or split orders and use exact lot multiples. |
| You want to place a market order on commodities | Check this commodity options guide for more info. |
Last updated: 06 Nov 2025
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