I received a "Margin Call" SMS/Email. What is it?
An SMS and email is sent out when you have a margin shortfall in your futures and/or options position owing to losses in the position.
When you receive this message, you have to either add funds to your trading account or reduce position size.
Find below an example message -
"Dear ZX000, Your Margin utilization has reached 112.98% of your available balance (i.e exceeded the available balance). Please add funds to your trading account avoid square off of your position."
Here, 112.98% utilization would mean that if you had Rs 100 in your account as available margin, you have utilized Rs 112.98 and your account has gone into debit.
To find out how much money you need to add, go to the funds page on Kite. Here, if the margin available is negative., you have to bring in that amount to make good the shortfall.
Example: In the below case, the margin available shows -19150, here you need to bring in a minimum of Rs 19150 Or reduced position size in order to release margin of at least 19150.
You are required to add funds to your trading account to continue holding your position failing which the position will be squared-off by our Risk Management System. If in case a position wasn't squared off there could be penalty charged by the exchange for holding a position overnight if you do not have the sufficient margin.
Please check the Margin Calculator for approximate margin requirements. Margin requirements can change during the day when a stock is volatile, which will not be captured by the margin calculator. The trading platform will be in sync with latest margin requirement from exchange.