What are the consequences of not maintaining sufficient funds for MTF positions?
With MTF (Margin Trading Facility), maintaining sufficient funds and margins is essential to retain your leveraged positions. FYERS follows strict risk management protocols to safeguard clients and ensure compliance.
What Happens If Margin Requirements Are Not Met?
- Margin Shortfall Assessment:
If your account falls below the required margin, FYERS' risk management team will flag the position. - Liquidation Risk:
Inadequate margins can lead to the liquidation of part or all of your MTF holdings to cover the shortfall. - No Prior Warning in Volatile Markets:
During periods of high volatility, liquidation may occur without additional notice to prevent excessive loss.
What If…
| Scenario | What You Can Do |
|---|
| Margins drop due to market movement | Add funds or reduce positions immediately to avoid liquidation. |
| Received a margin shortfall alert | Top up your account within the stated timeline to retain your MTF positions. |
| Position was liquidated | Review the transaction log and contact FYERS support if you need clarification. |
Important: MTF gives you leverage, but it also increases risk. Regularly monitor your margins to avoid forced liquidation.
Last updated: 12 Jun 2025
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