What is margin shortfall / limit issue?

What is margin shortfall / limit issue?

  1. Margin shortfall occurs when you hold onto positions in your trading account without having a sufficient margin.
  2. ​It's different from the actual account balance.
Penalties are levied on margin shortfall

    • Related Articles

    • In which type of cases margin shortfall and consequent penalty will arise?

      In the following scenarios margin shortfall may arise and margin shortfall penalty will be applicable: Margins increased by exchange during the day or EOD Wound-up/ Square off one leg of position in hedge positions Buy back of sold holding shares on ...

    • Is there any penalty in case of margin shortfall in new PMR?

      As the Broker have to report the margin collected from each client, as at EOD and peak margin collected during the day, in the following manner: a) EOD margin obligation of the client shall be compared with the respective client margin available at ...

    • What is Bonus issue?

      A bonus issue is when a company gives free additional shares to its existing shareholders in a fixed ratio based on the shares they already own. Although the total number of shares increases after a bonus issue, the overall value (market ...

    • What are Rights Issue?

      A Rights Issue is a way for a company to raise funds by offering new shares to its existing shareholders. In a rights issue, shareholders are given the right to buy additional shares of the company at a fixed price, usually lower than the market ...

    • What is maintenance margin?

      Initial margin collected in the form of cash and used for pay-in obligation.