What are Peak Margins?
Peak Margin is the minimum margin to be maintained by a client with a broker (Geojit) for any new or open trade. It requires a minimum of 20% of the order value for any new or open position to be maintained in your trading account. It can be maintained as cash or pledged securities, and any shortfall will attract a penalty.
As part of peak margin reporting, the Clearing Corporations take a record of client-wise open positions with a broker 4 times during a trading day. This is done to determine requirements and ensure that sufficient margins are maintained. The highest amount of margins utilised (based on open positions) from these 4 snapshots is taken as the peak margin requirement for the day. Hence, the margins to be maintained in your trading account are calculated based on the maximum value of positions taken during the day.
For example, Mr Vipin buy shares for Rs. 1 lakh over several orders in a day.
Assuming that peak margin checks are done at the given times, the margin requirement for his open positions during the day are as follows:
| Peak Margin Snapshot Time | Peak Margin Requirement |
|---|
| 10:00 a.m. | Rs. 25,000 |
| 11:00 a.m. | Rs. 30,000
|
12:30 p.m.
| Rs. 5,000
|
1:30 p.m.
| Rs. 15,000
|
When the broker reports client-wise margins to the exchanges at the end of the trading day, Mr Vipin must have a minimum of Rs. 30,000 (highest requirement during the day) as margins in his trading account to avoid penalties.
You will receive an email in the following format from the email id info@geojit.com.
Alert! -Peak margin call (TRADE CODE)
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Dear CLIENT NAME Greetings from Geojit! Sub: Margin usage (PEAK) crosses 104 % of total collaterals Ref: TRADE CODE We would like to bring to your attention that your present Margin usage (PEAK) has crossed 104 % and your positions may be squared off if the usage breaches 100%. The details are given below: Collateral Value | Peak Margin usage | Usage % | Shortage | 356542 | 370632 | 104 | 14090 |
In view of the above, we request you to ensure you have sufficient collaterals /funds, to avoid margin shortages. If we are required to square off, it will be done on a best effort basis.
Please ignore this alert if you have already squared off your position/ transferred funds/ cleared deliveries. Our order management system will check for upfront margins at the time of order entry and any penalty on other margin shortages, including MTM, may be passed on to your ledger.
In case of any queries, please do not hesitate to contact us. We look forward to your continued patronage and assure you of our best services.
Security Notice: We will never ask for your login ID, password, or OTP. Please refrain from sharing this information with anyone. Your security is our top priority. Message Generated Time: Jul 11 2025 12:16PM
Warm Regards,
Geojit For more details, please contact:
Toll Free: 1800 425 5501 / 1800 103 5501, Paid Line: +91 484 3911 777
E- mail: customercare@geojit.com |
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Geojit Investments Limited, Registered Office: 7th Floor, 34/659-P, Civil Line Road, Padivattom, Edapally, Ernakulam,682024, Kerala, India. Phone: +91 484-2901000. Website: [www.geojit.com/gil]www.geojit.com/gil . For investor queries: customercare@geojit.com , For grievances: grievances@geojit.com , For compliance officers: Zacharia K G, email id: compliance@geojit.com , Phone: 0484 2901000, lndu K, email id: indu_k@geojit.com , Phone: 0484 2901000. Corporate Identity Number: U66110KL2023PLC080586. SEBI Registration Numbers: Research Entity: INH000019567, Stock Broker: INZ000318938, Depository Participant: IN-DP-781-2024. |
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