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What is Additional Margin Call?

April 26, 2017additional margin call

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What is Additional Margin Call?

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Ans: A margin position can be created subject to sufficient margins maintained with IDBIpaisabuilder.in. However, the value of your margin positions keeps changing continuously, depending on the fluctuations in the prices at the Stock Exchange. The margin positions are, therefore, continuously monitored to keep a track of the “Mark-to-Market (MTM) loss”. If the MTM loss exceeds the threshold MTM loss, a Call for Additional Margin would be made, and the funds would be blocked to that extent. If enough funds are not available, securities are sold to release the margin.