At FYERS, Margin Trading Facility (MTF) allows you to trade with leverage, and with that comes the responsibility of maintaining sufficient margins and paying interest on time. If margin requirements are not met or interest dues remain pending, it can lead to forced square-off of positions, temporary suspension of MTF access, or a negative ledger balance.
Risk of Liquidation Due to Margin Shortfall
When markets are volatile and your mark-to-market loss reaches or exceeds 80 per cent of your initial margin, we may square off your mark-to-market positions without prior notice. This is a risk-control measure to prevent larger losses and applies to all MTF stocks.
Square-off can occur quickly at market prices. Maintain adequate margin buffers to avoid liquidation.
What You Should Do
- Monitor your MTM exposure and available margin under the Funds section.
- Keep an additional free balance to manage sudden price movements.
- We send alerts via email, WhatsApp, and occasionally by phone; however, liquidation may still occur without prior notification.
Learn more about margin shortfall notifications
What Happens If Margin Requirements Are Not Met?
- Positions may be flagged for margin risk.
- Square-off may occur partially or fully.
- There is no guarantee of prior notice during volatility.
MTF increases both opportunity and risk. Continuous monitoring is essential.
Notifications and Alerts
Yes, we notify you when your margin usage breaches the required limits.
- Trigger: Margin falls below the required threshold
- Channels: Email, WhatsApp, and sometimes phone calls
- Action: Add funds or reduce positions promptly
In highly volatile markets, liquidation may occur without notification. Alerts are not a substitute for active monitoring.
What Happens If You Miss Interest Payments?
If MTF interest is not paid on time, your access to MTF will be temporarily paused until dues are cleared. You will still be able to see your holdings and account details, but new MTF orders will not be permitted.
- There is no permanent restriction.
- You can view holdings and account details normally.
- MTF access resumes after outstanding dues are cleared.
Learn how MTF interest is calculated
What Happens After Square-Off?
- Losses are adjusted against your available balance.
- Shortfalls may result in a negative ledger balance.
- Interest may apply to outstanding dues.
Learn more about insufficient margin consequences
What If...
| Scenario | Solution |
|---|
| You add funds before the 80 percent MTM breach | Your position may be retained, but the Risk team may still review it based on market conditions. |
| The stock gaps down suddenly | MTM may breach the limit instantly. Square-off will occur at the next available price. Maintaining a sufficient margin is essential. |
| You received a margin shortfall alert | Add funds immediately. Learn more about alerts |
| You did not receive an alert | Check spam or promotions folders and verify registered details. Always monitor margin on the FYERS platform. |
| Your position was liquidated | Check your transaction log. If you need assistance, contact us. |
| You missed an interest payment | Clear the dues, and MTF access will resume. |
| You do not know why MTF is paused | Check your interest summary or reach out to us. |
| You need help reviewing a square-off or dues | Contact us with your Client ID and relevant details. |
Monitoring your Funds and Margin section regularly helps prevent disruptions or liquidation. Margin buffers provide additional safety during unpredictable market movements.
Last updated: 19 Dec 2025
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