Margin Shortfall
What happens in case of a margin shortfall?
An MTF margin shortfall occurs when the required margin for your positions increases due to:
🔹Market Volatility – If stock prices drop, the value of your portfolio decreases, requiring more margin.
🔹Exchange Risk Changes – If the stock's risk (VaR – Value at Risk) increases, the exchange demands a higher margin.
For example:
- SBI – VaR: 20%
- Tata Motors – VaR: 25%
- Axis Bank – VaR: 40%
- If your margin falls short, the system will square off the highest-risk stock first (in this case, Axis Bank with 40% VaR) to manage your risk exposure.
📝 Note: To avoid this, We send email and in-app alerts when additional funds are needed. Make sure to top up in time to prevent auto square-off of your positions.

