What is the MTF square-off policy?

If a client's margin shortage exceeds 10% of the requirement, they will be intimated via email/SMS to bring in additional margins. This is known as an MTF Margin Call, such as: 

In the event that the margin shortage exceeds 50% of the required margin, Geojit's RMS (Risk Management System) will automatically square off the MTF position without further notice.

For example:

Purchase Value 
Rs. 2,00,000 
Purchase Value 
Rs. 50,000
Min Margin Requirement 
25% (Rs. 50,000)

  • If the margin shortage exceeds Rs. 5,000 (10% of 50,000), the client will get an MTF Margin Call intimation. Here the client will be requested to bring in funds to cover the margin shortfall to avoid the position from being squared off if further losses are incurred.
  • If the margin shortage exceeds Rs. 25,000 (50% of 50,000), Geojit's RMS will automatically square off the client's entire MTF open position without further notice.

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