Risk team can initiate square off in 4
scenarios. All scenarios are explained below-
Scenario 1: DPR based Square Off– (Anytime during the
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
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.
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
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.
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
Threshold Of Liquidation
Liquidation up to 100% of the outstanding debit
balance is initiated
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
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.
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
*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”.
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.
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.