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: 
You may also receive an sms stating : "Greetings from Geojit, Ref-Trade code, MTF Margin Violation is -- pct. Violation above 50 pct may lead to squaring off positions. For details, check your registered email."
Once a margin call is received, Geojit's Risk Management System (RMS) will automatically square off the MTF position without further notice, subject to the following conditions:
- Positions will be squared off to the extent of the shortage amount within 5 days of such intimation.
- If the margin shortage exceeds 50% of the required margin
For example:
| Particulars | Amount |
|---|---|
| Purchase Value | Rs. 2,00,000 |
| Purchase Value | Rs. 50,000 |
| Min Margin Requirement | 25% (Rs. 50,000) |
- If the margin shortage exceeds ₹5,000 (10% of ₹50,000), the client will receive an MTF Margin Call intimation. The client will be requested to bring in funds to cover the margin shortfall to avoid the position being squared off if further losses occur.
- If the margin shortage exceeds ₹25,000 (50% of ₹50,000), Geojit's RMS will automatically square off the client’s entire MTF open position without further notice.
- Even if the shortage decreases or remains below 50%, if the margin call is 5 days old, the square-off policy will still be applied to address the remaining shortage.
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