When will my position be squared off due to losses?
If your position starts making a Mark-to-Market (MTM) loss, here’s how it works:
- At 50% MTM loss, you will get an SMS alert.
- After that, you’ll be alerted at every 10% increase in loss.
- If the loss reaches 80%, your position may be auto squared off based on available margin and fund status.
- If needed, the admin team may square off the position to prevent further loss.
Note:
Once you receive an alert, it is your responsibility to either add more funds or reduce your position.
Any profit or loss from the trade will be your responsibility.
Common FAQ's
- Can I use the premium/margin from selling my carry-forward Options position for other trades on the same day?
- Why can’t I use the funds from selling my carry-forward Options position for trading in Futures or Cash segments on the same day?
- What happens to my In-The-Money (ITM) stock Options on expiry day?
- What benefit do I get after selling shares from my demat on the same day (T day)?
- How is the limit against Sell given?
- Can I trade in Options and Futures on Expiry Day?
- When will my position be squared off due to losses?