Margin Trading Facility (MTF) and Margins
What is a Margin calculator?
The margin calculator helps you calculate the margins required and the leverage offered for trades in all segments. You can use it to check allowed…
What is margin penalty & why is it charged?
A margin penalty is a charge the exchange imposes when you fail to maintain sufficient margins in your trading account. Clients are required by…
What is Mark to Market (MTM)?
Mark to Market (MTM) in futures is a process of revaluing your open futures contracts at the end of each trading day to determine the profit or loss…
What is the interest rate for using MTF and how is it calculated?
You can use iRage's Margin Trading Facility (MTF) to buy shares by paying only part of the price initially, while iRage funds the remaining amount.…
What is the leverage indicator?
The leverage indicator displays the amount of leverage you receive for intraday trading of equity stocks. It appears next to Margin required in the…
What is Value at Risk (VAR), Extreme Loss Margin (ELM), and Adhoc margins?
Value at Risk (VAR) is a risk measurement tool used in risk management to estimate the potential loss in a portfolio's value due to market movements…
Why are additional margins being blocked for my existing long option position?
Additional margins are blocked for your existing long option position if the moneyness of the contract turns from out-of-the-money (OTM) to…
Why are market orders blocked for deep ITM index options?
Market orders are blocked for deep ITM index options because they are usually illiquid contracts with low trading activity. The bid and ask spread…
Why are market orders blocked for long-dated options?
Market orders are blocked for long-dated options because these contracts are illiquid. The lack of liquidity means the bid and ask spread is very high,…
Why did I receive an email and voice message about provisional margin shortfall?
You received this notification because your account has a margin shortfall. iRage sends both email and voice messages to notify you to transfer…
Why does Arrow increase intraday margins for MIS and CO on days when the market is volatile?
iRage increases intraday margins during volatile market conditions to manage risk beyond the minimum exchange requirements. While exchanges set minimum…
Why does the "MTF buy order is not allowed as there is an open holding sell position in this stock. Please close that position before placing MTF buy order." error appear?
Why does the "MTF buy order is not allowed as there is an open holding sell position in this stock. Please close that position before placing MTF buy orde
Why does the “MTF buy order is not allowed for the day as there is an MTF holding sell position in this stock.” error appear?
You cannot repurchase stocks on the same day after selling them from your MTF holdings. The system displays the error MTF buy order is not allowed for…
Why does the Arrow fund balance not include profits from today?
The available margin on Arrow funds only includes credits that are available for taking trades. To learn more, see What does margin available and…
Why doesn't my Arrow fund balance include profits or credits from previous trading days?
Your Arrow fund balance doesn't include profits or credits from previous trading days due to settlement holidays. The funds available for trading are…
Why is a nudge displayed mentioning that 100% of the funds from the sale of holdings can be used for other trades?
This nudge appears because of a regulatory change that became effective on 7th October 2024. This change allows you to use 100% of the proceeds from…
Why is a nudge displayed mentioning that 100% of the funds from the sale of holdings can be used for other trades?
This nudge appears because of a regulatory change that became effective on 7th October 2024. This change allows you to use 100% of the proceeds from…
Why is a nudge displayed mentioning: "Selling this stock will affect your MTF position since you have existing holdings. If you wish to hold that MTF position, avoid selling this stock"?
Why is a nudge displayed mentioning: "Selling this stock will affect your MTF position since you have existing holdings. If you wish to hold that MTF posi
Why is an additional margin required for selling index options?
As per regulations (WEB) introduced on 20th November 2024, an additional 2% Extreme Loss Margin (ELM) is levied on all short (sold) index option…
Why is higher than usual margin blocked for my F&O trades close to expiry?
Higher margins are blocked for your F&O trades close to expiry because physical settlement requires the actual delivery of the underlying stock. As…
Why is margin benefit not provided for the covered call strategy in Arrow?
Margin benefit is not provided for the covered call strategy because exchanges don't offer margin benefit for stock option positions against underlying…
Why is Margin Trading Facility (MTF) not allowed for some clients?
You cannot use MTF to buy stocks if you fall into any of these categories:
Why is the entire margin required to enter into a hedged position?
The full margin is required when you sell (short) options or execute futures before placing a buy hedge position. However, you can reduce margin…
Why is there a restriction in placing new NRML orders in some currency contracts?
Brokerage firms have a limit on the maximum open interest across all their clients' F&O positions. When this limit (PDF) is about to be exceeded, iRage…
Why should clients transfer funds to cover margin shortfalls?
You must add funds to your account by 11:59 PM on the same day if there is a margin shortfall in your account to avoid the following: