What Are the Consequences of Not Maintaining Sufficient Funds for MTF Positions?
With Margin Trading Facility (MTF), 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, our risk management system will flag your positions. - Liquidation Risk:
Insufficient margins can trigger the forced liquidation of part or all of your MTF holdings to cover the shortfall. - No Prior Warning in Volatile Markets:
During extreme market conditions, liquidation may occur without prior notice to prevent excessive losses.
Important: MTF gives you leverage, but it also increases risk. Regularly monitor your margins to avoid forced liquidation.
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. Refer to this article to learn more about margin call alerts. |
| Position was liquidated | Review your transaction log and reach out to our support team if you need clarification. |
Last updated: 02 Sep 2025
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