What is the Additional Maintenance Margin in MTF?

Additional Maintenance Margin is the extra margin that may be blocked for your MTF position when the stock’s margin requirement increases.

In MTF, margin requirements can change based on exchange regulations. If the VaR % of an MTF stock increases, the required margin for that position increases as well.

If the new margin requirement is higher than the margin already collected from you, Shoonya must collect the difference. This difference is called the Additional Maintenance Margin.

You can see this in your ledger as:

“Additional maintenance margin blocked/released for MTF.”

Example

Suppose you have ₹20,000 in your account and use 2× MTF leverage.

This means:

  • You bring: ₹20,000
  • Shoonya funds: ₹20,000
  • Total purchase value: ₹40,000
  • Initial margin required: 50%

Now, if the exchange margin requirement for the stock increases above 50%, the earlier margin collected may not be sufficient.

In that case, Shoonya will block the additional required amount as Additional Maintenance Margin.

This margin may be released later if the stock’s VaR % decreases or when you exit the MTF position.

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