What is a short margin? when it will occur?

A short margin happens when you don’t maintain the required margin while trading — like SPAN and Exposure for F&O, or VAR + ELM + Adhoc for equity.

This also includes charges for:

• Net buy premiums
• Physical delivery margins
• Marked-to-market (MTM) losses (if any)

Penalties:

• 1st or 2nd shortfall in a month: 1% of the shortfall amount
• 3rd or more shortfall in a month: 5% of the shortfall amount
• These penalties are charged as per exchange guidelines.

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