Hi @Dhan
I had sufficient margin till EOD yesterday (+33K) and should have inflow of +4k from Gold future. However, suddenly the margin displayed -12K. Why? Even my margin statement received in morning does not reflect any shortfall to this extent.
This is really not good.
Hi @Harish_Kumar3, as discussed over the call, we hope we were able to explain the ELM margin requirements on index expiry day and stock option expiry. For more details, please refer to our RMS page on physical settlement: Risk Management
on expiry day margin requirements are high it’s called ELM margin. your margins may be fine for yesterday but today is nifty expiry so today’s margin requirements are higher than what of yesterday hence the difference.
Hi @Mohseen_Usmani - Thanks for the clarification and the guidance. I was not aware of the same.
Hi, i just read this and i have a few questions regarding this. how at dhan margin shortfall is managed by RMS team? i mean do users get some time to manage and exit positions themselves or do you have a system in place that automatically exits some legs. if yes how system determines which leg to exit to reduce margin requirements? i mean i always have multiple trades in some strategy open in my account. if someday i have a shortfall how do dhan manages this if i don’t add funds before market open? do i have few minutes to manage myself or as soon as market opens system will square off some positions to reduce margin, if system does how does it determine which positions to exit?
Thanks.
As mentioned in our RMS policy, positions can be liquidated at any time at Dhan’s discretion to ensure exchange margin requirements are met. To avoid this, it’s best to add the required funds before 9:00 AM.
If a shortfall is not covered in time, the system may initiate square-off to manage risk. In such cases, positions are selected based on their margin requirement, with priority given to closing positions that consume the highest margin.
It’s also important to note that sending a short margin notification is not mandatory, however we send intimation on almost every shortfall and Positions may be liquidated on the same day itself in case of a sudden increase in margin requirements or MTM shortfall.
This process is designed to quickly and effectively reduce overall margin exposure in line with internal risk parameters and exchange guidelines.
one more question in this, if let’s say i have 2 lots short in account in same strike and i have margin short fall, will system exit both the lots i.e. whole leg or just 1 lot to reduce margin req.?
Yes, ofcourse only 1 lot will be squared off as you have enough funds to maintain 1 lot.
Got it! Thanks.
