What will happen if there are more than 1 margin open positions and the limits are not adequate to cover the Additional Margin requirement for all the positions?
In case the available margin is not sufficient to fulfill the additional margin requirement for all open positions, the available margin would be first allocated to the position that requires the maximum margin followed by the position that requires the next highest amount and so on. Thus limits would be blocked against positions in the descending order of additional margin requirement. After the entire available limit is blocked as above, the system will re-calculate the Additional margin requirement as explained above and square off the required quantity.
Related Questions
- What will happen if there are more than 1 margin open positions and the limits are not adequate to cover the Additional Margin requirement for all the positions?
- What are legal liabilities and how can I be sure that the policy limits will provide adequate cover?
- W hat happens if limits are not sufficient to meet the additional margin requirements?
