Position Square Off

There may be situations where Navia is forced to square off your positions in order to protect your interest, Navia’s business interest and also as per statutory guidelines. It is recommended that you continuously monitor you open/un-paid positions and bring in the required margins within the stipulated times so that Navia is not forced to square off your positions. Navia does not undertake or guarantee any communication to you before squaring off your positions. It is your primarily responsibility to understand the policies of Navia and Statutory guidelines and comply with the same.

The following are the possible conditions under which Navia will be forced to square off your positions. This is not an exhaustive list.

 

  • The clients' margin utilization is being tracked continuously by the RMS system. After taking positions margin utilizations can change due to changes in Margins (increase in margins or removal of one leg of a hedged position) on the underlying positions and also due to MTM. 
  • The clients' positions can be squared off by our RMS team at anytime during the day if the Margin utilization exceeds 100% due to changes in margin. Our RMS team would square off the positions to bring it under 100% utilization. Margin Utilization % = (Total Margin Utilized across all positions across all segments) divided by (Ledger Balance uploaded to trading platform + funds received during the day - funds withdrawal placed during the day) multiplied by 100. The clients' positions can be squared off by our RMS team at anytime during the day if the Margin utilization exceeds 150% due to Mark to Market (MTM) loss.  Our RMS team would square off the positions to bring it under 100% utilization. Margin Utilization % = (Total Margin Utilized across all positions across all segments + MTM loss) divided by (Ledger Balance uploaded to trading platform + funds received during the day - funds withdrawal placed during the day) multiplied by 100.
  • If the client has any NRML positions and where the margin utilization exceeds 130%, such positions would be squared off by the RMS and carry forward would not be allowed.
  • If client has a carry forward NRML position and where the margin utilization due to MTM loss is higher than 100% after market close, the client is expected to transfer funds before start of the market next day by 9 a.m. and bring down the margin utilization including MTM to less than 100%. If the margin utilization including MTM loss continues to be higher than 100% at market opening time next day, then such positions would be squared off by the RMS at the market opening to bring down the margin utilization to below 100%.
  • You have a CO or MIS position which you haven't closed even after the designated square off time. Typically, the intra-day auto square off timings are 30 minutes before market close for all segments. Inspite of best efforts made to square off positions, there is always a risk of positions not been squared off, due to market  volatility.
  • On the day of expiry, High value  ITM, ATM and CTM positions square off will start  at 2pm while normal ITM,ATM and CTM positions square off will start at 3pm.
  • You have a position where you have not maintained the required margins including the MTF segment.
  • If you have bought shares under MTF and have not accepted the pledge link, the shares will then be squared off on T+1 day.If you have bought equity shares using Collateral provided by you for Derivative trading and do not fund the position, the shares thus bought will be squared off on T+1 day

  • Pledged shares are squared off in case of a drop in the value of shares or loss in collateral margins.
  • Your open positions can be squared off if you place an un-pledge request for your pledged shares but don't have adequate cash balance.


Note: Auto square-off (Call and trade) charges apply for each order squared-off by our system. It is recommended that you close your open intraday positions before the above mentioned time / situation. Navia cannot be held liable for the losses and charges on account of being forced to close your positions due to the above reasons. For more details refer here

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