What is the Peak Margin?

What is the Peak Margin?

SEBI vide Circular Ref. SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020 reiterated that the applicable upfront margins are required to be collected from the clients in advance of the trade. The peak margin is not a new type of margin but it’s the highest of the applicable margins. For this purpose, Clearing Corporations (CC) will send at least 4 snapshots of client wise margin requirement to the Broker for them to know the intraday margin requirement per client in each segment. Accordingly, the Brokers have to report collection as per margin file provided by the CCs to Broker which will contain the End of Day (EOD)/peak margin requirements of the client across each of the intra-day snapshots.