MTF position shortfall

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How to calculate margin short fall in MTF positions?

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Hi @ANANDHAKUMAR_MURUGAN Welcome To MadeForTrade, Not sure, how we missed this !

MTF margin shortfall happens when a stock’s MTM loss isn’t covered by the client’s funds.

Example: A client has ₹25,000 and buys a ₹1,00,000 stock with 4x leverage. If the stock falls to ₹93,000:

  • Combined Ledger: -₹75,000
  • Holding Coverage: ( -75,000 + 93,000 ) ÷ 93,000 = 19%

Since only 19% is covered, the position will be squared off.

Read more at our RMS > MTF Tab.