The Risk team may initiate square-offs in four scenarios:
1.
DPR-based Square Off: Occurs anytime during the day when a client holds a short
position in a stock nearing its upper threshold of the Daily Price Range (DPR)
prescribed by the exchange. The position for that particular stock is squared
off, considering the short-sale quantity. The threshold varies based on the
circuit percentage of the stock. Threshold for Square off in the case of DPR is given below:
2. Intraday Square Off: Starting from 3:15 pm daily, all positions created as Intraday products are squared off, including Cover Orders, Bracket Orders, and Stop Loss Orders. No further intraday orders are accepted after 3:14 pm.
3. Real-time Risk-based Square Off: At any point during the day, if losses from Intraday trades in the Cash and Derivative segment erode more than 50% of the customer's net worth, all open positions are squared off. This includes Intraday trades and overnight open positions in the Derivative Segment, excluding delivery holdings.
4.
Risk-Based Square Off Beginning at 9:15 am daily, the Risk team initiates a
square off of debit balances for customers whose Gross Holding Value Cover
(GHVC) is less than 20%. The liquidation threshold varies based on the GHVC
percentage.
GHVC % | Threshold Of Liquidation |
1%-17% | Liquidation up to 100% of the outstanding debit balance is initiated |
18%-20% | Liquidation up to 75% of the outstanding debit balance is initiated |
5paisa Capital Limited may also terminate a client's position without prior intimation due to market volatility, SEBI directives, or other relevant regulations.
It's important to note that 5paisa has the right to initiate Intraday Square, but it's optional. Customers are encouraged to monitor and manage their positions. Any intraday product not squared off will be carried forward to the next trading day and automatically converted into a "Delivery Product."
Prior intimations before square-offs are provided as a precautionary measure. Funding via UPI and IMPS is advisable for clearing debit balances as it reflects in real time.