In which scenarios my equity intraday position gets square off by 5paisa?

In which scenarios my equity intraday position gets square off by 5paisa?

Risk team can initiate square off in 4 scenarios. All scenarios are explained below-

Scenario 1: DPR based Square Off– (Anytime during the Day) 

Exchange prescribes Daily Price Range (DPR) for most of the stocks. If the client has taken a short position in any of these stocks and the stock is nearing its upper threshold of the DPR range, then the risk team will square off the position only for that stock to the extent of Quantity short sold. Threshold for Square off in the case of DPR is given below:

​4%Tier (for Scrips with 5% Circuit)
8% Tier (for Scrips with 10% Circuit)
16%Tier (for Scrips with 20% Circuit)

Note: Only stocks Sold as Intraday will be considered for Square off. Stocks sold from Holding will be excluded.

Scenario 2: Intraday Square off (Daily 3.20 pm onwards)*

All positions (Cash and derivatives) which are created as an INTRADAY product will be squared off after 3.20 pm. This includes all types of Intraday products i.e. Cover Orders, Bracket Order and Stop Loss Orders.

Every day at 3.19 pm the system shall automatically stop allowing any further intraday order. Our Risk Management system first removes all pending orders and then squares off all Intraday Orders. Customers can view all their squared off orders on their Mobile app or Trade Station Web. 

Scenario 3: Real time Risk based Square off (Anytime during the Day)

Markets are volatile and price movements can be very erratic because of some events. Events can be pertaining to a particular stock or stock market as a whole.

5paisa Risk Management system monitors volatility in real-time. If the losses arising out of Intraday trades in the Cash and Derivative segment erodes more than 50% of the Net worth of the customer, then the Risk team squares off all open positions.

Open Position includes all Intraday Trades in the Cash and Derivative segment and all Overnight Open Position in the Derivative Segment. 

Note: This is an automated system and excludes all delivery holdings held by customers.

Scenario 4: Risk Based Square off (Daily 9.15 a.m. onwards)

Risk Team will initiate square off of debit balance for all customers where GHVC (Gross Holding Value Cover) is <20%. Please note, w.e.f. April 01, 2022 the below slabs for liquidation are implemented:

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


Gross Holding Value is the value of your Holdings excluding Z Category Stocks. A customer can check his GHVC % in the mobile App or Trade Station Web in Funds Section.

Note: In case the debit balance is because of margin shortage in derivative segment then square off will be initiated to the extent of margin shortage.  

Any Other Square Off

5paisa Capital Limited may initiate square off of a particular client without prior intimation due to market volatility, debarred by SEBI or as prescribed in any other rules or regulation.

*Intraday square off is merely a right of 5paisa and not an obligation. Intraday squaring off is an action of closing off any open position and it can be done best by the customer himself. Any intraday product which is not squared off shall be carried forward to the next trading day and will be auto-converted into a “Delivery Product”.

Note: Intimations prior to square off are merely add-on services provided as a precautionary measure by 5paisa. 5paisa holds the right to initiate risk-based square off with or without intimations.

P.S. Note: It is advisable to credit funds via UPI and IMPS for clearing the debit balance as the same is updated on a real-time basis.

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