What is Margin Shortfall?
As per the SEBI’s norms, if you are taking any position in Equities & Derivatives segment, you have to maintain below margins:
Equity
VaR Margin
Equity Derivatives
Span Margin
Currency Derivatives
Initial Margin
Commodity Derivatives
Initial Margin
Equity
Extreme Loss Margin
Equity Derivatives
Extreme Loss Margin
Currency Derivatives
Extreme Loss Margin
Commodity Derivatives
Extreme Loss Margin
Equity
Additional Margin
Equity Derivatives
Margin on crystallised obligation
Currency Derivatives
Margin on crystallised obligation
Commodity Derivatives
Additional Margin
Equity
Equity Derivatives
Physical delivery Margin
Currency Derivatives
Commodity Derivatives
Delivery Margin
| Equity | Equity Derivatives | Currency Derivatives | Commodity Derivatives |
|---|---|---|---|
VaR Margin | Span Margin | Initial Margin | Initial Margin |
Extreme Loss Margin | Extreme Loss Margin | Extreme Loss Margin | Extreme Loss Margin |
Additional Margin | Margin on crystallised obligation | Margin on crystallised obligation | Additional Margin |
Physical delivery Margin | Delivery Margin |
Margin Shortfall is said to have occurred if you maintain margin which is lesser than margin required on your positions.
Margin Shortfall = Margin Required - Margin Available
Click here to know the instances where there can be margin shortfall.