uTrade AlgosWhen you trade using Margin Trading Facility (MTF), you’re required to pay an initial margin upfront. But that’s not all — if your stock’s value drops, you may also need to cover Mark-to-Market (MTM) losses.
What Triggers MTM Payments?
MTM payments are triggered when the market value of your MTF stock falls below the price you bought it at. The difference becomes an unrealised loss, which you must settle to maintain your position.
Why is Paying MTM Important?
Compliance: Timely MTM payments help you comply with Share India’s and SEBI’s margin maintenance norms.
Avoid Margin Calls:
Unpaid MTM losses can trigger a margin call. If not addressed, your MTF holdings may be automatically squared off by Share India’s RMS (Risk Management System).
Risk Management:
Staying on top of MTM helps keep your risk in check and enables you to manage your capital more efficiently.
How Can You Settle MTM Obligations?
You can pay for MTM losses using:
- Your available cash balance
- Approved collateral securities
For any questions or assistance, feel free to reach out to Share India’s support team at support@shareindia.com or call us at 18002030303.