What is Peak margin and how does it affect Payout?

Peak Margin is the minimum margin that brokers must collect from their clients before placing any intraday or delivery orders in the Cash and Derivatives segments. Clearing corporations take four random snapshots at predefined time windows during the day to determine peak margin requirements for open positions. The highest margin requirement from these snapshots will be considered the Peak Margin. This system is intended to curb excessive leverage for intraday and derivatives positions.

Intra-day positions will now require upfront margins. If a trader falls short of the required margin during the session, they will be liable to pay a penalty.

How Peak Margin Affects Payout:

You will receive a maximum of 80% payout on your available cash margin after deducting the peak margin.

Example:

Peak Margin for the day: ₹10 lakhs

Available Cash Margin: ₹15 lakhs

Available Cash Margin – Peak Margin = Gross Payout Amount
₹15,00,000 – ₹10,00,000 = ₹5,00,000 (Gross Payout Amount)

You will receive 80% of ₹5,00,000, which is ₹4,00,000 (Net Payout Amount).

Note:

If your Peak Margin is equal to or higher than your available cash margin, your payout will be rejected for that specific day.

Even if you have squared off your positions, your payout will still be calculated based on the Peak Margin rule.

You can check your Peak Margin in the “”View Limit”” option in Shoonya.

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