How much margin will I receive?

The margin you receive depends on the Value at Risk (VAR) and the Extreme Loss Margin (ELM) regulatory norms for each stock. 

The Quantum of leverage may  change on a daily basis, and Shoonya will have the sole discretion to decide the same. 

For Stocks having F&O contracts:

• Margin is calculated as VAR + 3x ELM or 50%, whichever is higher 

For non-F&O stocks: 

• Margin is calculated as VAR + 5x ELM or 50%, whichever is higher 

Example scenario 

Let's assume:

• Stock price: ₹100
• VAR: 5% 
• ELM: 4% 

The margin requirement would be: VAR + 5 × ELM = 5% + 5 × 4% = 5% + 20% = 25% or 50% whichever is higher 

Thus, for a stock priced at ₹100, the margin required is ₹50. This means with ₹100 in your account, you can buy: ₹200 / ₹50 = 2 shares. 

Note: If the margin requirement for a stock increases beyond 50% on any trading day, fresh MTF positions in that stock will no longer be permitted. Existing positions may continue to be subject to applicable margin and risk management requirements, but no additional MTF purchases will be allowed in such stocks. 

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