A margin call occurs when the value of an investor's margin account falls below the broker's required maintenance margin. The broker demands additional funds (or liquidates positions) to restore the margin to the required level.

In F&O Markets (India)

  • Initial margin: Required upfront before taking a position (SPAN + Exposure)
  • If mark-to-market losses erode margin below initial margin level, broker issues a margin call
  • Investor must fund the shortfall within the same day (or before market open next day)
  • Failure to meet margin call → broker force-closes positions