What happens if fail to maintain margin?
When trading through the Margin Trading Facility (MTF) or Futures & Options (F&O) segment, investors are required to maintain the prescribed margin at all times. If the available margin falls below the required level, the investor may be required to deposit additional funds or pledge eligible securities to cover the margin shortfall.
Until the shortfall is rectified, the broker may restrict the investor from taking any new trading positions. In the event the margin deficiency is not addressed within the stipulated timeframe, the broker may liquidate shares or square off open F&O positions to recover the outstanding amount and manage risk exposure.
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What is margin liquidation?
Margin Liquidation is the forced sale of securities or closure of trading positions by a broker when an investor fails to maintain the required margin, resulting in a margin shortfall that is not rectified within the prescribed time.
How margin call is initiated?
Margin Call – Clients are requires to maintain minimum upfront margin as described by exchange and IIFL Risk policy at end of day in approved stocks of IIFL. For unapproved stocks client need to pay 100% margin. Failing to this, clients are marked in ...
What is maintenance margin?
Initial margin collected in the form of cash and used for pay-in obligation.
What is "Margin Used"?
"Margin Used" indicates the portion of your funds that has been utilized as margin for futures, options, or other leveraged positions. If you are not engaging in margin trading, this value will typically be ₹0.00.
What is Margin?
1.The net funds utilized for your executed equity intraday, F&O positional /intraday trading & delivery orders. The amount blocked for your Open orders yet to be executed. 2.Whenever you sell your shares or open F&O positions, the margin used will be ...