What is Margin Shortfall?
As per the SEBI’s norms, if you are taking any position in Equities & Derivatives segment, you have to maintain below margins:
| Equity | Equity Derivatives | Currency Derivatives | Commodity Derivatives |
|---|---|---|---|
VaR Margin | Span Margin | Initial Margin | Initial Margin |
Extreme Loss Margin | Extreme Loss Margin | Extreme Loss Margin | Extreme Loss Margin |
Additional Margin | Margin on crystallised obligation | Margin on crystallised obligation | Additional Margin |
Physical delivery Margin | Delivery Margin |
Margin Shortfall is said to have occurred if you maintain margin which is lesser than margin required on your positions.
Margin Shortfall = Margin Required - Margin Available
Click here to know the instances where there can be margin shortfall.