What happens to my margin if the stock moves against my favour?

The margin amount is blocked to safeguard against adverse price movements. However, the amount blocked as margin at the time of the transaction would be slightly greater than the minimum stipulated margin requirement to undertake the trade. This is to avoid from squaring off of the position in case of adverse price movements.

Read this for more info – What happens if the losses incurred are higher than the total margin blocked?

Was this article helpful?


Related Articles