What are VAR+ELM+Adhoc?

What are VAR+ELM+Adhoc?

Value At Risk (VAR) is the potential loss margin that a trader needs to provide upfront. VAR is covered for a single day in liquid stocks and for 3 days in illiquid stocks.


Extreme Loss Margin (ELM) is the additional margin that a trader needs to maintain over and above the VAR. 


Ad hoc is special margins blocked on specific securities depending on the nature of the security.