As per our risk management policy, if a client’s MTM (mark-to-market) loss falls below 65% of his margin available, then the client will be required to add funds in order to cover up his loss. If he fails to do so within a reasonable amount of time, and if his MTM drops further and reaches about 80%, the risk managers at Trade Smart Online have full discretion to square off his positions. This is done to protect both the client and the broker as the client has used intraday margin to enter his positions.
Example: Available balance is Rs.100000. If market crashes suddenly, made lose of Rs.80000 then MTM square off may be done by Trade Smart Online.