How to calculate margin short fall in MTF positions?
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.