uTrade AlgosTo mitigate potential losses, clients need to maintain a margin deposit. This margin serves as collateral and can be fulfilled with cash, marketable securities, or other approved assets. The specific amount of collateral required will vary depending on the type of commodity being traded and the overall risk of the client’s portfolio.
Types of Margins
There are a few different types of margins that may be required for commodities trading, including:
- Initial Margin: This is the amount of money that must be deposited when a new position is opened.
- Exposure Margin: This is the amount of money that must be maintained in the account to cover potential losses on open positions.
- Additional Margin: This is an extra amount of money that may be required if the market moves against the client’s position.
- Tender Margin/Delivery Margin: This is the amount of money that must be deposited when a client wishes to take delivery of a physical commodity.
- ELM Margin: This type of margin is related to extreme loss and is designed to cover situations where there are significant price movements in a short period.
- Peak Margin: This is the highest margin requirement that must be met at any point during the trading day.
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If you have any questions or need further support, don’t hesitate to contact Share India’s support team. You can reach us at 18002030303 or email us at support@shareindia.com.