Understanding risk management for MIS trades

@PriyaNT Looks Like You were Trading without Stop-loss?

Positions never get Auto square off at 50% in my case in Past.
I have crossed limit of 80% to 120% but My positions have never Auto Square off.

But, yes I received mail that I have crossed the available limit but positions never get Auto Square off.

I was ok with 120% as well however it was 300% of my funds available which was unbelievable…also, though I did not put any stop loss initially however I tried multiple times to square off however system didn’t allow me…not sure how d system works sometimes

Agree that it will get squared off at market order however when ? Unbelievable if it’s at 300% . That too when d price was going down it didn’t square off but as soon as d prices reversed it got auto squared off without me executing it…very disappointing it is

Yeah! This seems like a serious problem. Please talk to Zerodha and ask for clarification. Majority of brokers cut the losses at 80%-90%.

What was your overall Loss on Capital of 44k?

Overall loss with 44k (initial trade) was (303-228)*1500 = 112500

Entered d trade at 303 n when d prices reversed it got squared off at 228…within minutes it went beyond 303…very very disappointed with d software

So, Your Account is in Negative -Rs.68500/- ???

No, to cover the losses, i transferred money and incurred further losses…i called up Zerodha to understand this and they said the R&M team will give me a call on Monday. Need to understand why this happened…

Okay, so your total loss is Rs.112500/-

Bro I heard similar cases with other zerodha users
Does it happens only for cover order( I know in this case he did not use SL)
I heard lot of people talking similar things when using cover order

Agree that without SL, things can go awry however, cant believe that its not squared off when it exceeds 300% of your available funds. Have you heard something like this ? I am waiting for someone from RMS Zerodha team to respond on this.

Maybe your order will be rejected due to" Price is Out Execution Range" (usually happenes in highly volatile market)

Are you from Zerodha team or a member / client of Zerodha ? How does the system or RMS team just ignore when the negative figure is 300% of margin ?

In FNO segment there was a possibility of unlimited profit/loss.If the market is so volatile I think broker also cant do much.It is not possible that you can loss only the amount you had in your amount.If the market is highly volatile constantly hitting circuits nobody can do anything.As a trader we must keep close observation on stock movement and should place stop loss orders.
You can refer this link https://www.businessinsider.in/A-trader-started-a-GoFundMe-page-to-pay-back-100000-to-E-Trade-after-a-disastrous-short/articleshow/49851611.cms
If you are having 30 k in your account and you lost 1 lakh. Remaining 70 k is bad debt for broker also.So broker also dont want the account to go excess loss but some times nobody can do anything due to abrupt movement.

“All positions will be subject to square off if your losses exceed 50% of the available funds in your account. This will be done at the discretion of our RMS team and there will be no margin call.”…


1.Does this Query got it answered/ clarified by zerodha support?.. @nithin I am newbie, PL clarify it at the earliest in this regard

  1. AND WHAT IF INCASE OF proper BO/CO postition and MIS position with Stoploss limit trigger (which if suppose didn’t triggered in sudden volatility)…

  2. To Zerodha:

This qna is at its best, unique , knowledge & experience from our fellow traders are very much helpful… besides, can you provide support team links @…, etc., If we suppose to address our direct queries & doubts to Zerodha team in this forum?

thanks in advance…

Any open positions can be squared off by RMS team, if the overall available funds in your account do not account for Exchange Specified Margin.Typically these square offs happen when losses exceed 50% of the margin required. But there is no guarantee by the broker that it will be square off 100% loss of your capital (if market is highly volatile).


  1. Myself, once experienced this kind of problem, but in my case it is BRACKET ORDER - Buy limit order… My stop loss trigger not executed; price went below my stop loss trigger, but in reversal it got it triggered, lead to my about RS.300 loss… after price jumped above my TGT level… (Took screenshot, but I need to find out, I will post it later) ; Why did this happen even though I placed SL trigger within the limits?

  2. And @PriyaNT, did you receive any reply or guidance from zerodha support team in your above issue? Can you share it if so… pl…

  3. @nithin once again, I introduce myself new to Zerodha, newbie in the world of trading, I keep on studying zerodha Versity & and reading tradingqna regularly, but I regret to register/ bring to your notice here so many queries are unanswered from zerodha team for proper & genuine understandings… PL look into it… thanks…

Please go through below link to know risk involved in BO/CO

Thanks for immediate reply…

But, if my order is BO/CO-i.e., Intraday order, hence strict Stop loss trigger there by default… this SL trigger price also well & within the limit of my margin/ available fund limit in any worst scenario ( because zerodha doesn’t not allow any SL trigger price levels beyond my available fund limit)… PL GUIDE ME HERE,


  1. IF MY SL ORDER NOT TRIGGERED AT 3:20 PM, AND THE LTP IS BEYOND MY SL TRIGGER LIMIT (I personally experienced this scenario),

or at Zerodha’s any own auto-square off method of calculation
or at market close LTP lvl
or at my available fund limit equaling to Rs. 0
or at beyond my available fund limit, i.e., making my account balance in NEGATIVE? (IN MY PERSONAL CASE, AUTO SQ-OFF DONE AT MY NEGATIVE ACCOUNT BALANCE -RS.300/-; I immediately transferred amount from my bank account to Zerodha to avoid any penalty/interest charges from zerodha AND UNFORTUNATELY, I WAS MISSED TO TAKE UP TO THIS MATTER TO ZERODHA TEAM THAT TIME)…

  1. And whether these issues arises by any unknown issues in zerodha software/ app or is there any acceptable theory and written rules & regulations behind that to justify it from Zerodha?

Pl guide me…in query wise… thanks in advance…

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