Under what circumstances will m.Stock automatically close my positions / trades?

Modified on Fri, 9 Jan at 12:42 PM

m.Stock will close/square off your positions or trades under the following circumstances: 

Day Trade/Intraday timer based square off: You need to close/square-off all day trade orders prior to 3:10 PM if not squared off by 3:10 PM then the position will be squared-off by RMS (Risk Management System) anytime on or after 3:10 PM. On RMS square off orders, you will be charged Rs.100/- +GST per executed order. 

Daily Price Band square off: If you have taken Intraday position in any stocks and the stock is nearing its upper/lower threshold then the position will be considered for square-off. 

Example: If the price band is 20% and the price moves to 16% then the position will be square off to avoid the risk of the position not being squared off due to circuit freeze. 

Mark to market loss (MTM loss): All Intraday and Derivatives Positions carried forward will be squared off if MTM losses are more than 75% of the available margin. This excludes the delivery position. 

Margin shortfall: Due to increase in volatility or change in margin, if shortfall arises on client position. 

Debit in client ledger: Any debit that arises in the ledger account will be cleared by RMS through square off on T+5 (T being Trading Day). 

Inadequate Debit coverage: In case the collateral value (Collateral value – value earned by pledging demat stocks) available against debit balance falls below 15% i.e. inadequate debit coverage, the Risk Management System will initiate square off to clear debit balance. 

An open position in physically settled equity derivatives: Positions which are open in physical equity derivatives contracts which are expected to be squared off by the client within 1 working day of expiry of the month, then the Risk Management System will initiate square off on T-1 day before expiry day on a best effort basis. 

Corporate action: If you hold an Pay later (MTF) position and the stock undergoes any corporate action other than a dividend, we will notify you. If no action is taken, the position will be automatically squared off by us. 