Rupeezy's Risk Management (RMS) team can square off an open position during market hours — well before the usual end-of-day intraday square-off — when mark-to-market (MTM) losses approach 80% of the margin backing it, when a margin shortfall isn't topped up, or when a stock is close to hitting its daily price band. This can happen with or without a margin call, and the onus of closing a position in time is on you, not the broker.
When does the normal end-of-day square-off happen?
Open Intraday positions that you haven't closed are squared off automatically towards the end of the session — in the last half hour on NSE/BSE (you keep first priority to close it yourself; the system steps in only after that), and late in the session on MCX, whose market runs until 11:30 PM. Everything below is about square-offs that happen earlier than this, triggered by risk.
When can RMS close my position earlier in the day?
- Your MTM loss nears 80% of your margin. If the MTM loss on your positions breaches around 80% of your cleared balance (cash plus pledged-share margin), RMS can square off the complete positions. Treat 70–80% as a threshold zone, not an exact trip-wire — in fast markets the square-off can happen at, above, or past it, and the loss can even exceed your total balance, in which case the remaining debit is still payable by you.
- A margin shortfall you haven't topped up. If the exchange raises the margin on your position after you took it — this shows up through the peak margin files it sends during the day — you're expected to add the difference in time. Positions without sufficient funds behind them can be squared off, or converted to intraday and squared off, at any time at the RMS desk's discretion.
- The stock is close to its daily price band. If an intraday position's stock is nearing (roughly 90% of the way to) the upper or lower end of its daily price range, the risk team may square off the position to avoid it getting stuck at a circuit — you receive a confirmation after it's done.
What happens after an MTM-triggered square-off?
Any residual funds in your account can stay blocked for trading until you add fresh funds and bring the overall MTM percentage back below the threshold. If the square-off couldn't fully contain the loss, the resulting debit is yours to clear — see what happens if you don't clear a debit balance.
How do I reduce the chances of an RMS square-off?
- Use a stop-loss with a sensible gap between the trigger and the limit price, so your own exit fires before the risk thresholds do.
- Watch your margin utilisation, not just your P&L — MTM debits and margin hikes can erode it without any new trade.
- Top up as soon as you see a shortfall. There may or may not be a margin call from the RMS desk before it acts.
Things to keep in mind
- A shortfall in upfront margin can also attract an exchange margin-shortfall penalty, separate from the square-off itself.
- MTF positions have their own square-off rules and margin-call timelines.
- Rupeezy isn't responsible for losses arising from an RMS square-off, or for positions left uncovered due to a technical failure. The full RMS Policy is available with Rupeezy's other policies and procedures.