Margin Trading Facility (MTF) allows you to trade with leverage — but it also comes with important responsibilities around margin maintenance and timely interest payments. If you fail to meet these, it can result in the forced square-off of positions, temporary suspension of MTF, or even negative ledger balances.
Risk of Liquidation Due to Margin Shortfall
During a market crash or high volatility, if your mark-to-market (MTM) loss hits or exceeds 80% of your initial margin, FYERS may square off your MTF positions without prior notice. This is done to contain risk and prevent larger losses. This safeguard applies to all MTF positions, regardless of stock.
⚠️ Warning: Square-off may occur suddenly and at market prices. Always maintain buffer margin to avoid unexpected liquidation.
What You Should Do
- Monitor your MTM exposure and available margin under the Funds section.
- Keep additional free balance to absorb sharp market movements.
- FYERS sends alerts via Email, WhatsApp, and sometimes phone, but square-off can still occur without notice.
Learn more about margin shortfall notifications →
What Happens If Margin Requirements Are Not Met?
- Flagged Positions: If your margin dips below requirement, your trades may be flagged for risk.
- Forced Liquidation: Holdings may be liquidated partially or fully.
- No guarantee of prior notice during volatility.
Important: MTF gives you leverage — and with that, greater risk. Always track your margin health.
Notifications & Alerts
Yes, FYERS notifies you when margin requirements are breached:
- Trigger: Margin falls below required levels
- Channels: Email, WhatsApp, and sometimes phone calls
- Your Action: Add funds or reduce positions immediately to avoid liquidation
Note: In volatile markets, square-off may occur without notification. Notifications are not a substitute for active monitoring.
What Happens If You Miss Interest Payments?
If you miss your MTF interest payment, your access to MTF will be temporarily paused until dues are cleared. However:
- No blacklisting or permanent restriction
- You can view your holdings and account details
- New MTF orders cannot be placed until payment is made
Important: Keep interest payments up to date to avoid strategy disruptions.
Check how MTF interest is calculated →
What Happens After Square-Off?
- Losses are adjusted against your trading balance
- Unpaid shortfalls may show as negative ledger balance
- Interest may apply on pending dues
Understand the implications of not maintaining margin →
What If...
| Scenario | What You Should Know or Do |
|---|
| You add funds before the 80% MTM breach | Your position may be retained, but the Risk team may still act based on exposure and stock movement. |
| The stock gaps down suddenly | MTM can breach limits instantly. Square-off may happen at next available price. Use stop-losses and maintain extra margin. |
| You received a margin shortfall alert | Top up your account immediately to retain positions. More about alerts |
| You didn’t receive a WhatsApp or Email alert | Check spam/promotions folder and verify registered contact info. Always track margin from the FYERS platform directly. |
| Your position was liquidated | Review transaction log. If unclear, contact FYERS support. |
| You missed interest payment by mistake | Clear the amount and MTF access will resume shortly. |
| You don’t know why MTF is paused | Check interest summary in your account or reach out to support. |
| You need help reviewing a square-off or dues | Contact support with your Client ID and relevant details. |
💡 Tip: Set up your own margin buffers and regularly monitor your “Funds & Margin” section to avoid disruptions, forced liquidation, or account suspension. Notifications help — but your vigilance matters most.
Last updated: 02 Sep 2025
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