Support

How is Short Margin Calculated?

For Equity:- As per the New Policy, a client must maintain 20% of upfront margin, if he fails to maintain sufficient margin, a short margin penalty will be applicable. Let’s understand how this works with an example:

  • Assume you have ₹ 1000 in your trading account and you sold ₹ 2,00,000 worth shares.

  • You need to maintain a 20% upfront margin that is ₹ 40,000 but you have only ₹ 1000 in your trading account.

  • There is a margin shortfall of ₹ 39,000 (₹ 40,000 – ₹ 1,000).

  • Short margin penalty of 0.5% will be charged (39,000*0.5% = ₹ 195).

Was this helpful?

Haven't found the Answer to your Question?