Why have I been charged a margin penalty?

Why have I been charged a margin penalty?

You've been charged a margin penalty for one of two reasons:

·        Upfront Margin Penalty: This happens when your account doesn't have enough money at the start of a trade. For instance, if your broker needs ₹1.1 lakh for a trade but you only have ₹1 lakh, you'll face a penalty on the ₹10,000 shortfall.

·        Non-Upfront Margin Penalty: Alternatively, you might have been penalized for not adding money to your account after starting a trade, even though you met the initial margin requirement. If you don't add the required funds within the set time, you'll face a penalty.


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