Broker Margins and RMS squareoff


The SPAN+EXPOSURE margin typically cover 15% move. With many bank stocks above this limit, can the RMS of brokers react quickly to squareoff positions ? Will this lead to some systemic risks?

I think it depends on how soon the position has moved, if it’s moved in a couple of seconds, I don’t think any RMS or broker can be able to square off. This is from my own experience, waiting for Zerodha to respond.

Well, I was thinking about the PSU stocks that moved 30+ percent. And opened gap up 20% overnight … but I guess we didnt hear any tree fall in the forest.