Will FYERS square off my positions in case of ‘freak trades’?
Freak trades can cause sudden and extreme price spikes or drops in a stock or contract—but they typically last for just a moment. If you see a large, unexpected loss in your position momentarily, it could be due to a freak trade.
What is a freak trade?
A freak trade is a rare but sudden trade that occurs far outside the expected price range—usually because of low liquidity, a wide bid-ask spread, or an order placement error. These are short-lived and not reflective of the actual market value.
Will FYERS square off my position?
No, FYERS will not square off your position due to a freak trade.
- These trades occur instantly and typically self-correct in seconds.
- Unrealized losses may appear briefly on your screen, but they generally reverse once the price stabilizes.
- RMS (Risk Management System) only intervenes when margin requirements are genuinely breached over time—not because of temporary price anomalies.
What If...
| Scenario | Explanation |
|---|
| I see a large unrealized loss due to a freak trade | This is typically momentary. The P&L will adjust once the price normalizes. |
| My stop-loss gets triggered due to a freak price | If a stop-loss was placed near the freak price, it may execute. Use limit protection if needed. |
| I’m concerned about price accuracy | You can verify the price movement in market depth or check the exchange trade log for clarity. |
To avoid freak trade exposure, avoid placing large market orders in illiquid or low-volume contracts. Use limit orders to control execution prices.
Last updated: 28 Jun 2025
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