How do I respond to an increased margin requirement?
Should the margin requirement rise, it becomes imperative for investors to allocate additional funds for their open positions. Failure to do so may result in the position being squared off.
Related Articles
How is the margin for buying and selling options determined in the stock market?
For buying either calls or puts, the margin requirement is equivalent to the premium. Margin for buying options = Premium x Total Quantity The option seller, facing a higher risk, has an increased margin requirement. The exchange determines this ...
Why is my margin requirement showing zero in the order window?
When you sell options, you receive premium which will be used when placing an options buy order. If you have received a premium and you try to place a new options buy order, the required margin will show as zero if it's less than the premium you ...
Why is my order rejected stating, "Insufficient margin due to peak margin rule. Your available balance is ₹<amount> and your peak margin required is ₹<amount>."?
This rejection message occurs when the available balance in your account is insufficient to meet the peak margin requirements. This rule is primarily enforced when you attempt to buy back a sold scrip using the Invest or Cash and Carry (CNC) option. ...
How to determine the margin for hedge positions?
When dealing with hedge positions, understanding the margin requirements is crucial for efficient trade execution and risk management. Here's a detailed guide on how to determine the margin for hedge positions: Suppose you have selected the following ...
Can futures contract margin requirements vary?
Yes, due to price volatility fluctuations, margin requirements can change. For real-time margin details, please refer to our Margin Calculator.