uTrade AlgosMTF allows you to buy stocks by paying only a part of the total value upfront. However, maintaining this position requires you to meet margin obligations, and if you don’t, there can be consequences.
How Can You Meet Margin Obligations?
To maintain your MTF position, you must either:
- Pay the margin shortfall in cash, or
- Pledge approved securities from your Demat account.
These requirements apply not only at the time of purchase, but also when:
- Your MTF holdings lose value (MTM losses)
- Share India’s RMS raises a margin call
What If You Don’t Pay the Margin in Time?
If you fail to meet a margin call, the following may happen:
Liquidation of MTF Holdings: Share India’s Risk Management System (RMS) may square off your MTF positions to recover the margin shortfall.
Square-off Order: In cases of high market volatility, RMS may require investors to square off their positions on short notice, as per risk protocols.
Increased Financial Risk: Liquidation may occur at unfavorable prices and timing, resulting in loss of control over your trade’s exit.
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.