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What is the reason for my open position being squared off even though I have the necessary SPAN margin for the trade?

Even if you have the initial margin (SPAN margin) for the trade, the market conditions can change rapidly. If the value of your position drops significantly, it might trigger a margin call. Brokers may square off positions to limit potential losses if the margin falls below the required maintenance level.

Or your MTM (Mark to Market) has been reached in that scenario also the order will get squared off from RMS.

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