How does RMS work in the event of a crash?

[vivek]

@siva/@nithin if am long nifty futures and have also bought puts to hedge in case of a crash down, will RMS square off only the futures or puts as well? And is there any sequence in which it does it for example first square off futures and then puts? Is there any criteria like options on the buy side are never squared off because the loss is limited? My fear is that the RMS will by mistake square off puts first and then square off futures at whatever price it’s available to do so…and that would mean unlimited losses

[siva]

@vivek

if am long nifty futures and have also bought puts to hedge in case of a crash down, will RMS square off only the futures or puts as well? And is there any sequence in which it does it for example first square off futures and then puts? Is there any criteria like options on the buy side are never squared off because the loss is limited? My fear is that the RMS will by mistake square off puts first and then square off futures at whatever price it’s available to do so…and that would mean unlimited losses

If it is a hedge position then most likely they will leave the position or close both at a time , I mean one after other in any order at market prices.