Hi,
It has two part. MIS - auto square off at 3.20, during the day if position goes against trader, M2M is monitored, we get alert at various % auto cut off will happen without notice if market is very volatile or M2M has breached 80% of your margin.
NORMAL - position in NORMAL are against 100% margin Say nifty 1 lot margin is 30k and nifty falls by 2%,(M2M is 5k) trade going 100 points against should make a trader sit up and review his/her decision if not you will get a call on your short margin. If you carry position with short margin then you will get a call after market on this and will be asked to make up the margin. We presume that for a retail trader 100 points move against will ask for review of your trade. If this happens due to Gap up or Down opening then we have given our stance in an earlier reply on this thread.
For more clarity you may give a trade and we will explain or send mail to us at
[email protected] for any detail query.
Happy Trading,
Team VPS